Hampshire and the Isle of Wight’s fire service has been wrangling with a huge budget gap that it’s now bringing under control – but it will hike council tax by the maximum amount.

The Hampshire and Isle of Wight Fire and Rescue Authority has managed to reduce its deficit to £1.8 million, which will be bridged with reserves.

In December, the authority reported facing a deficit of £3.3 million, initially £6 million in June, but that’s been lowered for 2025/26.

This reduction was made possible by government funding for the employer’s National Insurance rise, updated collection fund estimates from the billing authorities, and additional proposed efficiencies and savings totalling £1.24 million.

As a result, the budget deficit was cut to £1.879 million.

Officers are instructed to use a one-time draw from the Budget Equalisation Reserve, which is maintained by the authority to balance the budget.

Cllr Derek Mellor said: “Congratulations on wicking down a £6 million deficit that we were looking at for 25/26 and getting back to where we are. It is a tremendous effort.”

The authority also approved raising council tax to the maximum referendum limit of £5. This will signify an extra 6.04 per cent increase in the amount a Band D home pays to the fire authority, starting April 2025.

The authority said this will generate an income of £64m. The introduction of council tax premiums for second and empty homes will generate an extra £500k for the organisation.