Local taxpayers footing the bill

11:58am Wednesday 17th October 2007

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TAXPAYERS in Hampshire are paying for public services outside South East England, claims the county council leader.

Hampshire County Council chief Ken Thornber attacked the Government after a new report showed taxpayers in South East England pay more tax and receive less public spending than others in the UK.

Cllr Thornber said: "Business and taxpayers in Hampshire are sick of footing the bill for local government services in other parts of the country, while the vulnerable and elderly in Hampshire struggle to get services they need."

On average, each of the region's nine million taxpayers pays nearly £9,400 per head, while the state spends just over £7,400, according to the report by research organisations Local Government Futures and Oxford Economics.

Taxpayers elsewhere pay just over £8,000 per head - but receive £1,000 more in public service funding.

The study concluded the increased tax rate was down to the South East's successful economy, but the public spending shortfall was a result of successive poor Government finance settlements, which meant "10 of the 11 counties are at the funding floor in 2007/08".

A large chunk of the money spent by councils is doled out by central government according to a funding formula.

But Cllr Thornber said the Government had penalised Hampshire for its innovation and efficiency.

He said the high numbers of elderly and vulnerable people in the county, combined with high infrastructure and labour costs, meant there was a limit to how far the South East could bankroll other regions before it stifled its own economy.

"It's time the Government gave us a fairer deal with adequate funding that will help us continue to be the powerhouse of the UK economy," he added.