A REPORT to be presented to councillors tomorrow will outline the severity of cuts being made by Hampshire County Council.

The council has already budgeted to remove more than £250million from its spending by 2015 and now faces the prospect of having to find a further £98million savings by 2018 due to Government cuts.

A report to the Cabinet will outline growing pressures, particularly on adults’ and children’s social care.

The council’s new digital strategy, a business development strategy for sharing and trading services to generate income, and making more innovative use of the council’s assets will partially address the shortfall.

Its capital programme, valued at £765million over three years, is the largest ever injection of public sector capital into Hampshire - creating jobs, demand for materials and new and improved school buildings, care facilities such as extra care units, roads and transport infrastructure.

Council leader Roy Perry said: “I well understand the Government’s need to bring public expenditure back under control but with further grant reductions to come and no let up in demand for care services - that are becoming more expensive to provide - decisions around future spend are becoming increasingly difficult.”

He added: “Having been at the Local Government Association conference in Bournemouth this week I have heard from other council leaders who face similar problems and recognise that Hampshire is one of the most successful councils in addressing the financial situation.”