HAMPSHIRE County Council is preparing to make further spending cuts, the cabinet committee is due to hear.

On Monday (July 21) the committee will hear of the Government’s further reduction in grants which has forced the county council to find a further £98million in savings by 2018.

Officials have already budgeted to remove over £250m from its spending by 2015.

The county council's actions to date include the development of a new digital strategy to transform and modernise the way services are delivered, a business development strategy for sharing and trading services to generate income, and making more innovative use of the council's assets.

These activities will be supported by the county council's capital programme, which at £765million over three years, is the largest ever injection of public sector capital into Hampshire, by creating jobs, demand for materials and new and improved school buildings and road and transport infrastructure.

As a result, members from the cabinet intend to keep the programme under review to make sure it maximises the opportunities to lever further Government and private sector funding where possible.

However, services will need to develop further revenue savings proposals over the next six months in time for next year's budget decisions.

Hampshire County Council leader, Councillor Roy Perry said: “Our budget strategy has successfully achieved more than £200million of savings to date, while continuing to deliver quality services at the lowest cost to the taxpayer - so it has served Hampshire well through this period of national austerity.

“We will continue to make further efficiencies and maximise return on every pound spent - while at the same time, finding further opportunities to create new and sustainable ways of providing quality public services to the residents of Hampshire.

“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.”