Portsmouth City Council make £3M in savings in budget

Portsmouth City Council has outlined £3m of savings and a council tax rise ahead of the budget-setting process.

The leader of the council has called on the government to provide proper funding to address financial pressures in local government, rather than relying on repeated council tax rises.

The city council, like most across the country, has been dealing with rising costs associated with adult and children’s social care, temporary accommodation and special educational needs.

In December last year, the government confirmed its three-year funding settlement for councils, with Portsmouth’s allocation stated as £62.1m.

However, the council says only £39.9m of that figure represents additional funding. Of this, £21.7m is based on the government’s assumption that council tax will rise by 4.99 per cent in each of the next three years.

This leaves £18.2m of additional funding from central government over the three-year period.

Including the proposed council tax rise, the council’s total funding for 2026/27 would be £259.3m, an increase of 6 per cent. Excluding council tax, the government’s settlement for the city would stand at £144.6m – an increase of £7.9m.

Cost pressures from adult and children’s social care, temporary accommodation and special educational needs are expected to rise by around £16m in 2026/27, a figure that would not be met by the increased settlement and the council tax rise, which is expected to generate £5.4m.

Because of this, the council is continuing with planned savings of £3m a year between 2026/27 and 2028/29.

Councillor Steve Pitt, leader of the council, said: “It’s a relief that we can yet again put forward a budget that addresses our financial pressures without reducing any services. 

“While many councils are having to make cuts our record of responsible financial management means the savings we need to make in Portsmouth are much lower than similar sized councils across the country.

“Increasing council tax is always difficult but the Government has forced us to do it. Every time the Government announces funding for councils they say they’re giving us a huge figure but a very large chunk of it is actually just permission to increase council tax. 

“That is not new money for the city, it is money taken from our residents. Rather than using smoke and mirrors to get credit for something it hasn’t done, the Government needs to give local councils proper funding. It’s not just Portsmouth asking for this, it’s a national issue across all local authorities.” 

Council tax is expected to rise by the maximum 4.99 per cent, with 2 per cent ring-fenced for adult social care. The increase would see the average Portsmouth household’s council tax bill rise by the equivalent of £1.36 a week.

If accepted by the council’s cabinet, the budget will go to a full council meeting on February 24.

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