Hampshire County Council has approved savings proposals of £98million to close its budget gap by the year 2017/18.

Ahead of this week’s Government comprehensive spending review announcement, council leader Roy Perry said: “It’s essential we start preparing as early as possible for the financial picture ahead, taking into consideration the prospect of further likely cuts in our grant from government, alongside the additional pressures we expect to face on our budgets, by the end of the decade.

“On-going demand for social care to address the complex needs of growing numbers of older people, and vulnerable children and adults, continues to be a major factor in our financial considerations.

“As we head toward 2020, we must also bear in mind the future cost implications of the national living wage when it’s introduced next year, particularly in the area of adult social care.

“With growing pupil numbers, the provision of secondary school places will also significantly influence our budget forecasts.

“Taking all these factors into account, it represents the greatest financial challenge we face yet, and coming at the end of a previous eight years of austerity in the public sector.”

The council’s grant from government has more than halved since the recession and the authority’s unprecedented efficiency and change programme, started in 2008, has so far delivered £240million in savings, transforming the way services are delivered.

Hampshire has maintained its share of council tax at the same level for six years in a row – at one of the lowest levels in the country.

Mr Perry added: “Early and prudent financial planning is among Hampshire’s strengths, and we are already planning now how we could close the predicted funding gap in 2020.”

More savings could come from new, modern technology solutions, selling and trading services with other public sector partners to generate income, as well as opportunities if the Government gives more devolved powers to Hampshire.