NEXT Year’s council tax may have to rise to make up for a shortfall in funding from the government, according to Hampshire County Council leader Roy Perry (pictured).

Provisional figures announced by the government last week mean Hampshire County Council’s revenue support grant has been cut by £48 million next financial year – a decrease of 37.4 per cent and £29 million more than the authority was anticipating.

The reduction is due to a change in the way the government distributes money to local authorities. By 2019/20, the council will no longer receive any revenue support grant.

The Government’s financial plans also assume all local authorities will put up their council tax by the maximum they are allowed, which for Hampshire would be 3.99 per cent and would include an extra two per cent flexibility to pay for the increasing costs of social care.

A one per cent increase in council tax would generate approximately £5million in revenue for the council.

Councillor Perry said: “We are obviously very disappointed with the settlement. We appreciate the need to reduce public spending and we are more than willing to play our part in that, but the change in distribution methodology was not expected, and has never been consulted on.

“The loss of an additional £29million grant next year is a most unwelcome surprise, less than four months before the start of the new financial year, and I am concerned the council tax payers of Hampshire may have to pay more, but won’t see the benefit of this in local services.

“We will obviously be responding to the Government’s proposals and will make it very clear what the impact of this re-distribution will be for Hampshire.

“I have already written to all our MPs to explain to them the implications of this announcement. We will also need to think very carefully about what options we may have in setting next year’s budget.”

The council said it will continue to analyse the figures and respond formally to the Government’s consultation in the new year, in the run up to setting the budget and council tax for 2016/17 in February. Critics accused the Tories of releasing a series of “bad news” on the final day of the parliamentary session before the recess.