Council leader Ken Thornber said the authority had no choice About 1,200 jobs are set to be axed at Hampshire County Council under plans to save £55m for 2011/12.
The authority says it plans to save £7m by cutting senior management, implement a recruitment freeze and save £10m by renegotiating contracts.
It blamed the cuts on a reduction of £30.9m (14.3%) in its government grant.
Staff and unions are being consulted over the job cuts – 8% of the workforce. The council said it hoped it could minimise compulsory redundancies.
Other savings include a reduction in the county council subsidy it gives commercial bus operators to run less used services.
The proposals also include cutting communications, support and IT costs by about £11m each.
Councillor Ken Thornber, leader of the Conservative-controlled council, said: “There can be no debate over whether or not we make cuts, the withdrawal of government funding to meet the national debt leaves us without that choice.
“The issue is how we face up to these financial challenges, while laying strong foundations for the difficult years beyond.
“Included within this programme are plans to reduce our pay bill, which makes up 51% of our overall budget.
“We have tried to do this in a way that minimises job losses and we hope, where possible, to achieve this through voluntary measures. But sadly there will be some staff who will face compulsory redundancy.”
The budget is due to be agreed by full council on 24 February.
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