THE changing face of council in East Hampshire tax looks set to come into force in the financial year 2016-2017.

While Hampshire County Council aims to address a massive £48m funding gap - due to further cuts to its grant from central Government - by raising its part of the council tax by 3.99 per cent, East Hampshire District Council is looking to cut its share by two per cent.

At county council level, the largest share of the council tax charge, Hampshire County Council’s cabinet is proposing a 3.99 per cent increase, generating around £20m in annual revenue.

For residents in an average band-D property, this would equate to an extra £41.40 for the year 2016-2017 - or just under 80 pence extra per week.

As a result, the county council’s council tax charge for the year beginning April 1 this year would be a total of £1,079.28 for a band D property. This is expected to be ratified at a meeting of the full council on February 18.

If given the go ahead, Hampshire County Council will join Hampshire Constabulary in resorting to an increase.

It was agreed on January 22 that the policing part of the council tax would go up by 1.99 per cent. For residents in an average band D property this will equate to an increase of £3.13 to £160.48 per annum for the year 2016-2017, or six pence a week.

But East Hampshire District Council is taking a different tack by proposing a two per cent drop in council tax, making it one of the few councils in the country thought to be considering a decrease this year.

If approved by the full district council on February 25, it will leave Band D properties paying £134.58 per year to the district council rather than the current charge of £137.33. The decision is viewed by district council leader Ferris Cowper as “a serious statement of intent” for the council, which is trying to reduce council tax to zero by 2024.

It is expected that Government grants to councils, traditionally one of a local authority’s main sources of income, will reduce by 48 per cent between 2016 and 2020 and eventually disappear altogether.

The council intends to make up this shortfall in cash by continually seeking out and investing in new sources of income.

Money-making business ventures, the sale of services to other local authorities and investment in blue-chip commercial properties are all bringing in funds.

“Our financial strategy is radical and unique,” Mr Cowper said. “Where many councils cope with a drop in income by raising taxes or cutting services, we have decided to go a different way. We aim to be self-sufficient by removing our reliance on Government grants and, if we can, reducing our council tax to nothing. And we plan to do all this while maintaining our services to the highest possible standards.

“By cutting our council tax for the 2016-2017 financial year we will show our ambitious plans are serious and achievable.”

At the end of last month, Whitehill Town Council set its budget and precept for the coming financial year.

Members voted in favour of a proposed budget for 2016-2017 which will see income of £393,064 and expenditure of £431,564. A total precept of £332,730 was agreed (the council’s overall income from council tax). A total £38,500 of the overall income of £393,064 will come from the council’s reserves, having been funded by developer contributions.