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.