Southampton residents face a significant council tax increase for the 2024-25 financial year, as the city grapples with delivering essential services amid mounting financial pressures.
The council has confirmed a 4.99% increase in council tax for 2024-25, the maximum allowed without triggering a public referendum. For perspective, a Band D property in Southampton will now pay £1,812.69 for the year, contributing to a total Net Budget Requirement of £239.24 million.
The increase comes at a crucial time for Southampton City Council, which recently avoided effective bankruptcy through emergency government support. The council secured £121 million in government funding to help balance its budget for the coming year.
But what exactly do Southampton residents get for their money? The council manages approximately 700 different services, ranging from foster care to archaeology, recycling to cycle routes, and public health initiatives to cultural events. These services support 250,000 residents, 16,300 tenants, and 6,000 businesses across the city.
For the upcoming year, the council plans to spend £595 million on local services, excluding housing. Major spending areas include:
Adult Social Care and Health: The largest portion of the budget, with planned savings of £17.5 million needed in this sector alone, highlighting the financial pressures on essential services.
Resident Services: Including waste management, leisure facilities, parking, and homelessness support, this area faces £11.7 million in planned savings.
The council faces particular challenges in children’s services and adult social care, with ongoing financial pressures amplified by inflation and rising interest rates. For residents struggling with the increase, some relief may be available through various discount schemes, including a 25% reduction for single-person households.
Despite these financial challenges, the council maintains its commitment to delivering essential services while working to achieve long-term financial stability. The coming year will be crucial in determining whether the current funding model can sustain the diverse needs of Southampton’s growing population.
