National politicians have understated the degree of public spending cuts that will hit Hampshire, according to county council leader Ken Thornber.
The financial outlook is even bleaker than earlier forecasts predicted, he claims, and the council is braced for a deep funding black hole.
The council receives almost £250million in general and specific grants from government which fund services operated by the council but these are likely to see reductions. As a result, the county is ‘in for a bumpy ride’, he said.
Cllr Thornber commented: “We had already planned a medium to long term financial strategy that prepared for a 2% cut in our government grant. Now we have to consider the implication of far greater reduction in our funding. Where we can, we will plug the gap with efficiency savings however it is becoming more difficult to find savings and often efficiencies are not immediate.”
One key area where savings will need to be made is the library service, which is already operating at more than £1million more than the council can afford annually.
Cllr Thornber continued: “If we don’t act now we are likely to see our library service costing us £1million more tan we can afford next year and by even more in the following years. We want to maintain and improve our library service and continue with the implementation of better IT and longer opening hours. To do this we will be remodelling the library service to reduce management costs,”
On top of this, the council has pledged millions-of-pounds to sort out the county’s roads following the arctic blast of December and January. Known as Operation Restore and Resilience, the £117.5million scheme is being financed through the sale of assets, efficiency savings and specific grants. Cllr Thornber insists county bosses are taking action early to reduce the impact on residents.
He continued: “We hope that by planning for the worst-case scenario, Hampshire will be prepared for whatever public spending cuts are borough in and will be well placed to meet all the spending requirements I have outlined. The new coalition government must act to deal with the deficit in public finances and we shall have to play a part.
“While not of our making we must plan to ensure we can maintain low Council Taxes and effective public services.”
