Hampshire County Council has an annual budget of almost £2 billion pounds. That money is spent on public services like education, roads, libraries, public health and waste disposal.
So far - since central Government's funding began to be cut in 2008 - the council has saved £340 million from its budget.
Because of the rising cost of adult social care - like services for the elderly - it has increased council tax. Despite that, it says it faces a budget shortfall of £140 million.
We have been reporting for some time now, the extent of the financial challenge that we continue to face. With our revenue support grant from Government soon coming to an end, together with rising inflation and significant increases in the numbers of elderly people, younger adults and children needing care - the pressures are mounting.
Members of the public, for good reasons, tend not to see the children in the care of the County Council, or those on the 'at risk register', but there is no doubt in my mind that they must be our highest priority to protect.
We are limited on the level by which we can increase council tax, and changes to the law would be needed to enable us to introduce or increase charges for some services - even though residents have indicated they would prefer to make contributions for some discretionary services rather than lose them.
The financial outlook remains extremely challenging. It's going to be very difficult indeed to achieve a further £140 million of savings, on top of the £340 million of spending reductions we have had to make since our funding from central Government began to reduce in 2008.
A final decision on where the cuts will be come wil be made by full council on November 2.
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