The average county council tax bill looks set to rise by £80 over the next two years as the authority looks to plug its £140million funding gap.
It has been proposed that rates increase by 4.99 per cent next year, and by a further 1.99 per cent in 2019.
Hampshire County Council faces having its government funding slashed by £140m by April 2019, and its cabinet will discuss a range of cost-cutting measures when it meets on Monday.
However the authority does appear to have ruled out a possible referendum on increasing council tax further, stating it would be “unlikely to be successful”.
Council leader Roy Perry said: “Increases in council tax, in line with government policy, will have to play an important role in helping to contribute towards balancing the budget.
“Residents have told us they understand the need for this and that they are prepared to pay a bit more.
“We are limited on the level by which we can increase council tax, and changes to the law would be needed to enable us to introduce or increase charges for some services.”
Rates for a band D property would increase from £1,133,10 to £1,189.64 next year, and then to £1,213.31 in 2019.
This is just the county council’s portion of the tax, and doesn’t include that taken by other councils, police and the fire service.
Presently councils are only able to increase tax by up to 3.99 per cent a year – although this was increased by an extra one per cent for 2017 and 2018 – without the need for a referendum.
An increase of almost 30 per cent would have been needed to bring in the £140m without any other cuts having to be made.
Monday’s meeting will see the cabinet put forward a range of measures to reduce the funding deficit, ahead of a final decision being made by full council on November 2.
Proposed cuts include withdrawing funding for all subsidised bus services, closing half of the county’s waste and recycling centres, and reducing the budget for highways maintenance.
Final decisions on council tax increases won’t be made until February, but the council is working on the assumption that these will be approved.
Cllr Perry added: “The financial outlook remains extremely challenging.
“It’s going to be very difficult indeed to achieve a further £140m of savings on top of the £340m of spending reductions we have had to make since our funding from central government began to reduce in 2008.
“I understand the pressure the government faces in preventing the national debt spiralling out of control but the pressure on local government is huge.”