Portsmouth Lib Dems warn local government “on its knees” amid budget pressures
Portsmouth’s Liberal Democrats have slammed the Labour government for failing to support local councils, warning that local government is “on its knees” as financial pressures mount.
At a Portsmouth City Council cabinet meeting today, members discussed the 2025/26 budget, which will be debated in a full council meeting on February 25. The council faces an £18.8m rise in spending - an 8 per cent increase - due to rising costs in social care, homelessness support, and wider inflationary pressures.
Despite a £19.2m boost in funding, including £14.3m from central government and £7m from council tax, the council still faces an underlying deficit of £4.4m next year, with a projected £9m gap by 2028/29.
Chris Ward, the council’s Section 151 officer, assured councillors that Portsmouth had managed its finances responsibly and never spent beyond its means. However, he warned that the future will be more difficult, as the council enters a “structural deficit” for the next financial year. “The future is starting to get challenged,” he said.
Lib Dem councillors condemned the government’s lack of long-term financial planning. Cllr Matthew Winnington said ministers “continue to not recognise the pressures that we’re under and not properly fund local government”. He described feeling “really, really angry” that councils are forced to make cuts because of Westminster’s failure to act.
Cllr Winnington expressed apprehension at the recent announcement of a multi-year financial settlement for councils, stating “we’ve been asking for one for decades”.
Cllr Steve Pitt was equally scathing, accusing Labour of ignoring a cross-party white paper from the Local Government Association. “We have a Labour government that doesn’t listen,” he said, adding that Angela Rayner’s pledge to forge a new relationship with councils had instead resulted in plans to “abolish most of it” - referencing local government reorganisation.
The government announced its final settlement on February 3, which is a multi-year funding agreement for councils. It would see a 6.8 per cent increase in core spending power for councils in England.