Portsmouth City Council in Hampshire is proposing £3 million of revenue savings for the 2026/27 financial year as it faces rising costs for adult social care and temporary accommodation. That £3m forms part of a wider plan to find £9m of savings over the next three years to stabilise the council’s finances through 2028/29.
Council leader Cllr Steve Pitt said the current model of local government funding is not working as costs for helping vulnerable residents continue to rise. The council is proposing a 4.99% council tax increase — the maximum likely allowed without a referendum — which it says would generate about £5.4m (including a 2% adult social care precept). Council forecasts show adult social care demand alone could increase by roughly £9.4m and that temporary accommodation and other pressures are also growing, so the tax rise would only partially offset those costs.
The council is also proposing a £31m capital “spend-to-save” investment to buy and convert properties (including former hotels such as previously purchased Ibis and Holiday Inn sites) to provide temporary accommodation. The aim is to reduce the expensive nightly payments the council often makes to private providers for emergency housing. Local reporting has covered the proposal and the wider savings plan, including the council’s outline of pressures and the £3m revenue savings target.
Over the last 15 years, the council says it has already made more than £113m of savings from its annual budget, and its Medium Term Financial Strategy warns that finding further efficiencies without affecting core services is becoming increasingly difficult. Cabinet will consider the budget proposals in early February and Full Council is scheduled to vote on 24 February 2026 at Portsmouth Guildhall to set the final budget for the year starting 1 April 2026.
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