CIVIC chiefs are facing their ‘biggest financial challenge yet’ in plugging a £140 million funding gap.

Hampshire County Council has to close the hole by 2019/2020.

The authority has said closing the gap represents their biggest financial challenge to date.

Leader of the council, Cllr Roy Perry said: “Our finances remain under immense pressure as demand continues to grow for council services – particularly social care for increasing numbers of older and more vulnerable adults, and vulnerable children.

“We have to make some very tough decisions on which we will be seeking residents’ views in the coming weeks. The picture is worsened by the fact that central government revenue support grant funding to Hampshire will cease altogether in 2019/2020.”

At their first meeting since May’s council election, members of the cabinet will receive confirmation of the authority’s financial position at the end of 2016/2017 and the preparations needed for the next round of spending reductions.

The council say the majority of the reserves are already committed to fund capital investment, and one-off reserves cannot be used to solve constant revenue problems.

Cllr Perry added: “All of this means that the council needs to find more radical ways of making ends meet while ensuring that we protect vital services.

“Given that our efficiency programme between 2008 and 2019/2020 represents total savings of nearly £0.5 billion, we need to continue to ensure limited funds are targeted to where they are needed most.

“Securing savings early; reinvesting in new, more efficient ways of working; and making prudent use of our reserves to meet gaps in funding – are all measures that residents have told us they support. To date, this approach has enabled us to reduce our spending by £340 million since 2008.”

The council say they will be seeking residents’ views in the summer on what the authority could do over the next two years to help balance the budget.