THE leader of Hampshire County Council has warned the chancellor that local authorities across the country could “fall” unless legislation reforms how they operate and how decisions are made.

In a letter to Rachel Reeves, Nick Adams-King added that it won’t be the council’s fault if they don’t succeed and overcome the financial deficit – it will be the government’s fault if it does not “grasp the nettle” and recognise how local authorities are funded is “often not fit for purpose”.

Hampshire County Council recently made cuts to spending. It is facing a recurring deficit of £175m, which could even increase in the following year due to the lack of government funding and the increased demand for social care and SEND education.

READ MORE: Financial crisis deepens at Hampshire County Council

Hampshire County Council's offices in Winchester (Image: NQ)It is said that the council won’t be able to balance the books only from savings. It said a “cash injection,” as well as a reform of adult and children’s social care and SEND provision, alongside a Hampshire devolution deal, allowing the council to decide how to raise and spend money, will help.

In the letter to Rachel Reeves, Cllr Adams-King said the way councils are told to operate by the Government and how they are stopped from raising money is leading to them “plunging into the red”.

He said that although the time is “short”, the administration aims to work with ministers on how to proceed.

Cllr Adams-King said: “Like many local authorities across the country, Hampshire County Council is now operating under significant financial strain.

“I fully recognise that resources are not unlimited. Reform is thus vital to helping to reduce financial pressures on local authorities, as is exploring opportunities for greater local decision-making.

“More centralisation will do nothing but further harm our finances. I passionately believe Hampshire County Council needs to be able to take more decisions locally. Doing so would allow us to be far more entrepreneurial and allow us to direct our resources to the right places as the need arises without the need to meet centrally allocated budget heads or employ people in inefficient ways.”

The leader also asked for a review of councils’ statutory duties, some of which date back to World War Two, and the ability to charge for some services to ensure they can still operate while protecting the vulnerable.

SEE ALSO: Hampshire County Council ordered to pay £23,500 over care failures

He added in: “Unless there is comprehensive reform, a new ethos of innovation and a recognition that local authorities are best placed to know how to look after their citizens, I fear Hampshire County Council will continue to face huge challenges in the years to come that it will struggle to address.

“The situation right now is challenging, but it can be fixed with the approach I have outlined. A failure to reform and give the county council the powers it needs to innovate and decide where to spend the money it raises will mean more pressure until the system breaks.

“This will not be the fault of the county council – it is doing everything it can – it will be the fault of government if it does not grasp the nettle and recognise how we are funded and told to operate is often not fit for purpose.”