Follow the handle and stem down to the body of the valve you will see a nut. Its called the packing gland nut and squeezes a non permeable material against the stem of the valve thus preventing escape of water Get a spanner on it and nip it up clockwise. but not too far or you wont be able to turn the water on or off cos this makes the tap harder to turn.
Take care with it! its only made of brass.
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