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Hampshire Council Approves 4.99% Council Tax Hike for 2025

Hampshire County Council has officially approved a 4.99% increase in council tax for the 2025/26 financial year. This decision aims to raise £876 million in revenue, although the council will still need to draw £68.2 million from its reserves to balance the budget.

Why Is Council Tax Increasing?

Council leader Nick Adams-King stated that the increase is a necessary measure to manage financial pressures. Despite requesting a 15% increase, the council was denied approval by the government, which stated that any rise above 4.99% would require a public referendum.

How Will This Affect Homeowners?

For Band D households, the council tax bill will rise to £1,609.83 per year—an increase of approximately £1.47 per week. Notably, 2% of this increase is allocated specifically to support adult social care services.

Important Note: This tax increase does not include additional contributions that homeowners will need to pay to their borough/district council, police, fire authority, or parish councils.

Projected Financial Impact

By the end of the 2025/26 fiscal year, Hampshire County Council’s financial reserves will be reduced to £31.8 million. Looking ahead to 2026/27, Adams-King warned that the council may face the risk of issuing a Section 114 notice, which would indicate that it can no longer maintain a legally balanced budget—effectively declaring bankruptcy.

Council’s Justification for the Tax Hike

Adams-King described the decision as “incredibly difficult” but emphasized that the increase is critical to sustaining essential public services. The council aims to continue supporting:

Children at risk of abuse and neglect

The growing elderly population

Individuals with disabilities and additional needs

What’s Next for Hampshire Residents?

Residents should prepare for the increased council tax in April 2025 and stay informed about any future changes. Given the potential financial strain on the council, further tax discussions or service adjustments may arise in 2026/27.

Key Takeaways:

✅ Hampshire County Council has approved a 4.99% council tax increase.

✅ A Band D household will pay £1,609.83 per year.

✅ The council requested a 15% increase, but the government denied it.

✅ Without further intervention, the council may face a financial crisis by 2026/27.

✅ The increase aims to fund critical public services, especially adult social care.

Check your 2025 council tax bill and payment options now to avoid late fees. Visit

You might also want to know about New Hampshire Draws a Line on Sales Tax – What Happens Next?

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