Hampshire cannot be allowed to go ‘bankrupt’
Bankruptcy is never a pleasant experience for anyone involved, but when we are talking about a large local authority which represents the best part of a million people, the consequences would be dire.
However, this is what senior councillors at Hampshire
County Council are now warning.
Earlier this year, Slough followed Northamptonshire and Croydon to become the third local authority in three years to be declared bankrupt.
Others have sought government bailouts to keep themselves afloat.
Back in March the National Audit Office warned that as many as 25 local authorities were teetering on the brink, so this is clearly not a crisis exclusive to Hampshire.
Many authorities have revealed massive holes, running to tens of millions, over the past few years when each budget comes around. The pandemic has only served to exacerbate these problems.
There is only so much saving of cash by paring back services that can take place before something gives.
With prices rising across the board, and council tax increases being pushed to the max, voters are already being squeezed from all directions.
Could it be that local authorities in the south – Tory heartlands – are paying a steep price, literally and metaphorically, for their faithfulness to the party?
While the Conservatives have looked to shore up their support in the north by favouring increased spending there, it is their traditional supporters who have suffered. Why, so the thinking would go, spend money in the south east when the residents there will vote Conservative regardless?
But something needs to be done – more cuts will inevitably impact the most vulnerable in society.
The government needs to make sure we get our fair share too.