SPENDING is being reduced by Hampshire County Council as part of the national cuts in public spending announced last week. A freeze on recruitment alone has so far saved the council £200,000 in its first month of operation.

The county treasurer will be briefing the Cabinet on the outcome of the Comprehensive Spending Review, which was announced last week, at its next meeting today.

Councillor Ken Thornber, leader of Hampshire County Council, said: “Staffing costs will be reduced as these make up 51 per cent of our budget, but we want to do this in a way that reduces the need to make compulsory redundancies.”

Cllr Thornber and other Hampshire council leaders were due to meet Communities Secretary Eric Pickles on Friday to discuss the cuts.

Cllr Thornber said that with the cost of his 40,000 staff accounting for over half Hampshire’s budget, it was “inevitable that we will see reductions in our workforce across all levels”.

While welcoming extra cash for social care, he said: “We will have choices to make on which services might need to be reduced.”

Reviews in council departments are targeting eight per cent annual cuts – about £35m to £40m over four years which could result in hundreds of posts axed.

The cost reduction programme will include the integration of some services, reducing management costs, cutting communications and support costs, renegotiating large contracts, reducing mileage and reducing office space.

Cllr Thornber added: “We will not have a clear indication of how Hampshire is to be affected by the public spending cuts until December when we receive details of our actual grant.

“Local government faces significant cuts to its funding over the next four years and we have to be prepared.”