William Eichler 15 November 2024

County council issues bankruptcy warning

County council issues bankruptcy warning image
Image: Dave Colman / Shutterstock.com.

Hampshire County Council could face effective bankruptcy in two years without more Government support, according to a financial forecast by the local authority.

A report to the cabinet said there is ‘confidence’ the council will be able to balance its budget for 2025/26 as legally required.

However, it warned that without more ‘flexibilities’ over charging and a ‘significant increase’ in funding it is ‘pretty clear’ that the council would need to issue a Section 114 notice for 2026/27.

In September, the council reported its projected overall financial shortfall had jumped from £132m to at least £175m.

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