Portsmouth’s council chief has branded the Labour government “deluded” over reorganisation plans that could saddle the city with Hampshire County Council’s £97.6m budget deficit.
Hampshire councils are advancing towards Local Government Reorganisation (LGR), forming part of Labour’s strategy to establish larger unitary authorities nationwide, each covering approximately 500,000 residents.
The shake-up would eliminate Hampshire’s current two-tier structure, where services are divided between Hampshire County Council and smaller district councils including Fareham, Winchester and New Forest.
Councils are currently preparing boundary proposals for new authorities. Portsmouth has been suggested to merge with Gosport, Fareham and Havant.
LGR operates separately from devolution plans, which would establish a regional mayor with delegated powers across Hampshire and the Isle of Wight.
Minister Jim McMahon announced on Tuesday that Hampshire, the Isle of Wight, Portsmouth and Southampton would share £542,174 for developing reorganisation proposals.
Councillor Steve Pitt, Portsmouth’s council leader, dismissed this funding as “nowhere near enough to cover the cost across all councils”.
He criticised the government for imposing reorganisation “without answering our direct questions” whilst the process drains council resources.
Related: Tipner West housing plan back under government review
Portsmouth’s Liberal Democrat leadership fears inheriting Hampshire County Council’s £97.6m budget gap under new arrangements.
“Government expects the process to create sufficient savings to address the structural revenue budget of Hampshire County Council, without any additional financial support. This is deluded,” Cllr Pitt stated.
He demanded Portsmouth’s exclusion from reorganisation, arguing the government lacks evidence that residents would benefit from the proposals.
McMahon acknowledged financial risks in a May 28 letter to Cllr Pitt but emphasised councils’ responsibility for budget management, calling borrowing and debt “standard”.
The minister added that reorganisation proposals should demonstrate how implications “can be managed locally, including as part of efficiencies possible through reorganisation”.
Planning Bill Faces Conservation Groups’ Backlash Over Habitat Threats
