Hampshire County Council may need to ask the Government for permission to raise council tax above the five per cent national threshold.

The council's leader, Cllr Nick Adams-King, has warned that without proper funding or greater freedoms from the Government, the council will struggle to tackle its financial pressures in the coming years.

At a cabinet meeting on Friday, November 15, the council considered its financial position for the next two years and the possibility of formal talks with the Government.

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These talks would be to request permission to raise council tax for 2025/26 above the permitted five per cent national threshold unless the Government's anticipated policy paper on local government finance provides necessary changes in the law and greater freedoms and flexibilities to help the local authority address the urgent financial pressures it faces.

Councillor Adams-King said: "Like many councils nationally, our budget pressures may be considerable, but what sets Hampshire apart is our solid track record of strong financial management and our determination and commitment to remain proactive in our efforts to tackle these challenges head-on - but we must have the support we need from the Government to do so.

"We have always been open and honest with the people of Hampshire about our finances.

"The exceptional budget pressures we face are not of our making - namely unprecedented demand for local services, particularly across social care and services for children with special educational needs and disabilities, as well as rising costs.

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"The report we have considered today is a snapshot in time which warns of a stark financial challenge that potentially lies ahead in two years’ time.

"We continue to do everything in our power to address this recurring budget gap - now anticipated to rise to £182m from 2025/26 onwards.

"We have already identified a substantial part of this amount through our recent decisions around savings, however there is much more still to do."

He added: "Alongside councils up and down the country, we were hoping government would announce a significant increase in funding in their recent Budget, to help with social care pressures, together with some extra freedoms and flexibilities over council tax setting and raising income.

"Frustratingly, this didn’t happen, with only an extra £8m or so for Hampshire from the additional £1.3bn earmarked for local government overall.

"The Government needs to be mindful that demand for services like social care and special educational needs and disabilities continue to soar in Hampshire."