In February, Southampton City Council was one of 19 authorities granted a capitalisation directive by the government.

It meant it was allowed to use £121.6m of capital resources – selling-off assets and buildings – to raise money for one year.

It included up to £52m to cover a “potential equal pay claim liability” with an equal pay audit reviewing different working practices that have been in place in parts of the organisation. That work is ongoing.

The council still faces a predicted £18.2m deficit for the next financial year 2025-26.

Ms Fielker said next week’s Autumn Budget may provide more clarity to local councils.

She added a Solent devolution deal, with Portsmouth, Hampshire and the Isle of Wight was still a desired position to give more “local control over government money, meaning we can target inequality and deprivation”.