A FUNDING shortfall of more than £100m will leave Hampshire County Council on a 'precipice', according to research.

The county council has a hole in its finances of £132m, the largest predicted shortfall in the South East, for the upcoming financial year according to research published by public service union, Unison.

The figures, based on information from local authorities across the region, show that council funding is in a 'dire state' with massive cuts to essential services and jobs 'likely' says the union.

READ MORE: Complex dentistry cases have led to delays, top Hampshire health boss says

The national report, Councils on the Brink, warns that failure to rectify the growing problem soon risks ‘the widespread collapse of local government’.

Unison has warned that local authorities in the South East could be forced to sell land, buildings and other capital assets, as well as cut back vital community services like libraries and leisure centres even further.

The figures, based on freedom of information requests and councils' own financial forecasts, predict that in England alone, the gap could reach £3.4bn by 2025/26.

At Hampshire County Council, the estimated £130m funding gap for 2025 and 2026 represents 11 per cent of its £1.2bn annual revenue budget.

UNISON South East regional secretary, Steve Torrance, said: “Councils are on the brink of financial disaster. Countless essential services and very many vital jobs are at risk, with terrible consequences for communities across the South East.

SEE ALSO: Roadwork budget to be cut by county council to bridge budget shortfall

“Local authorities were clobbered by the previous Westminister government, whose harsh financial settlements left councils with no option but to sell off the family silver, auction off green spaces, close key community facilities and let thousands of workers go. Only swift and decisive action to stabilise local finances will do.

"So as tough as the financial situation may be, ministers cannot ignore the terrible plight of authorities of every political persuasion.

“There’s an unquestionable need to turn the page on the destructive cuts of the past and invest in services and staff to help councils rebuild Britain.”

A spokesperson for Hampshire County Council confirmed that the council is facing a financial shortfall of 'at least £175 million' if there is 'no further grant funding announced by central Government for adult social care'.

The county council has held three service committees this month, with a further four to take place, to assess how the council can save money and the impacts of cutting services.