Southampton City Council has approved a £285.2 million spending plan for the 2026/27 financial year, marking the first time in three years the local authority has balanced its books without emergency government help. The decision, confirmed in February 2026, will affect every household in Southampton, Hampshire, as the council sets its priorities for local services and community funding.
Under the new plans, council tax will increase by 4.99 per cent, which is the highest amount allowed without asking residents for a vote. People living in Band D properties will see their annual bill rise to £1,998.18, which works out to an extra £1.83 each week starting from April 2026.
Southampton City Council plans to spend £150.72 million on various local projects, including £37.81 million to buy new bin lorries and £10 million to fix school buildings. Cabinet Member for Finance and Resources, Cllr Simon Letts, stated that the council’s finances are now completely in balance after several years of financial difficulty.
While council leader Cllr Alex Winning described the move as a step toward financial recovery and honesty, the plan has faced criticism from opposition leaders. Cllr Daniel Fitzhenry argued that the budget is based on assumptions that may not match reality, questioning if the recovery is truly sustainable for the city.
