Hampshire and Isle of Wight Fire and Rescue Authority hiking council tax to plug budget gap

Hampshire and the Isle of Wight’s fire service has been wrangling with a huge budget gap that it’s now bringing under control – but it will hike council tax by the maximum amount, writes Local Democracy Reporter Natalia Forero.

The Hampshire and Isle of Wight Fire and Rescue Authority has managed to reduce its deficit to £1.8m, which will be bridged with reserves.

In December, the authority reported facing a deficit of £3.3m, initially £6m in June, but that’s been lowered for 2025/26.

This reduction was made possible by Government funding for the employer’s National Insurance rise, updated collection fund estimates from the billing authorities, and additional proposed efficiencies and savings totalling £1.24m.

As a result, the budget deficit was cut to £1.879m.

Officers are instructed to use a one-time draw from the Budget Equalisation Reserve, which is maintained by the authority to balance the budget.

Hampshire county councillor Derek Mellor said: “Congratulations on wicking down a £6m deficit that we were looking at for 25/26 and getting back to where we are. It is a tremendous effort.”

The authority also approved raising council tax to the maximum referendum limit of £5.

This will signify an extra 6.04 per cent increase in the amount a Band D home pays to the fire authority, starting April 2025.

The authority said this will generate an income of £64m.

The introduction of council tax premiums for second and empty homes will generate an extra £500,000 for the organisation.