Council shake-up could leave local services "massively under threat"

The UK government’s Local Government Reorganisation (LGR) plans, introduced in 2024 as part of wider devolution reforms, aim to replace Hampshire’s two-tier council system with four new unitary authorities, each serving around 500,000 residents. One proposal merges Portsmouth, Fareham, Gosport, and Havant into a single South East Hampshire authority, with elections set for May 2027 and full operations beginning in May 2028. Critics argue the reforms lack sufficient funding and could worsen existing financial pressures, forcing difficult decisions on service cuts and asset sales. Portsmouth City Council leader Steve Pitt has strongly opposed the changes, describing them as 'delusional' and warning of a £67m budget gap in the new authority. Hampshire County Council faces a £101.9m shortfall in 2026/27, which Pitt says will be inherited by the merged council, threatening non-statutory services like libraries, museums, and community wardens. Portsmouth has already lost £113m in funding since austerity measures began, leaving only £10m–£15m for discretionary spending on resident-focused programs. Concerns extend to council-owned assets, including Portsmouth International Port and housing portfolios, which Pitt warns could be sold to address funding gaps. The transition period until 2028 is expected to be critical, as the new 'shadow authorities' assess financial risks and potential service reductions. Ministers argue the reforms will simplify governance and reduce duplication, but local leaders insist the lack of clarity and funding jeopardizes long-term stability. Under the current system, Portsmouth’s £10m–£15m discretionary budget covers services like business support grants and events programs, all of which Pitt says could be at risk if deficits persist. The proposed unitary authorities aim to align services with local economies and housing needs, but critics argue the financial strain may outweigh these benefits. With elections approaching, the debate over service cuts and asset sales remains a central issue for residents and local leaders alike.