Hampshire CC, which is bearing front-loaded budget cuts of £55m this year and faces an expected £45m funding gap in 2012/13, has clarified its use of financial reserves, due to fall by around £84m this financial year.

Among figures given in its reserves breakdown, the council, whose strategy has been lauded by government ministers, marshals £37m in Hampshire schools, £65m representing six years back pay owed under equal pay law and tribunal rulings, £16m to cover redundancies and £16m to help pay for capital investment and PFI liabilities.