Heating bills in more than 5,600 council houses could be set to rise as Southampton City Council looks for ways to save itself from bankruptcy.

A consultation was launched today to get the public's views on several cost-cutting proposals: hiking council home rents by 7.7%, doubling council tax for people with second homes or properties that have remained empty for more than a year.

Currently, there is a £38.4million deficit to balance the council's books for the next financial year - 2024 to 2025.

This is equivalent to around 10% of the council's total budget of £371million to spend on day to day services minus schools.

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Some of the proposals were discussed at an Overview and Scrutiny Management Committee meeting of the council on Wednesday evening.

Councillor Simon Letts, cabinet member for finance and change, told the committee: “This is possibly the most difficult financial year that the council has faced.

“The issues really lie with the inability to set a balanced budget over a number of years.

“We started the year with a £30m deficit in-year which is unprecedented. We have therefore struggled against a tide all year."

Daily Echo: The proposed increase in rents for 16,000 council-owned homes would begin in April 2024 and go up by 7.7% - the maximum amount allowed by Government - adding an extra £4.2million into council coffers next year.

But for those on Universal Credit and Housing Benefit, the hike would be covered by their payments. This is around three in four tenants.

The heating bill increase would affect 5,664 properties on the Landlord Controlled Heating Scheme and would go up by 6.5% in 2024/2025 and 5% in 2025/2026.

This would mean an increase of £1.38 a week and £1.66 a week for Band A and B properties, which the majority of tenants live in.

This would help plug a £3.6million deficit incurred last financial year due to the cost of living crisis.

The proposed plans to up council tax for second homes would affect 906 properties and would save the council £350,000 next financial year, rising to £1million in future years, along with the hike for empty homes.

The Labour-run council is said to be ‘overspending in children and adults’ social care and ‘don’t have the resources’ to support the department beyond February next year.

Should the council fail to plug this gap, they may need to ask for financial help from the Government - or issue a section 114 bankruptcy notice.

This could lead to Government commissioners taking over the council's finances and a council tax hike of 15 per cent.

In a separate press release, Cllr Letts wrote: “All local authorities are having to respond to increases in demand and spiralling operating costs, and we are no different.

“In the face of this enormous national pressure, we remain ambitious for our city and will continue to focus on growth, jobs and investment, while delivering neighbourhoods to be proud of."

The consultation can be found on the council website and is open until the 17th of January 2024.