COST cutting at the council saw it come in under budget last year, but there are rocky times ahead according to its leader.

Cllr Mike Snelling, leader of Gravesham Borough Council, unveiled a prudent budget for the next 12 months which takes into account smaller Government grants and the impact of the credit crunch.

It includes a rise in local council tax rates of 4.9 per cent, the maximum allowed under Government guidelines, together with further efficiency drives in every council department, although staff redundancies have been ruled out.

Youth projects will benefit from having a brand new cabinet post dedicated to youth provision, along with £50,000 to spend on youth projects, and the elderly are to receive £55,000 towards the concessionary bus fare scheme for the over 60s.

Another £40,000 is being set aside for community groups to bid for, and the council has also managed to set aside £300,000 to top up its reserves for emergencies.

Despite the positive news for some in the community, the outlook for the next three years is bleak.

Cllr Mike Snelling said: “The medium term plan is a bit frightening. Looking out to the year 2012/13 we are going to have to take out another £2.2million from the budget.

“The Government grant is set to stay very low, so we have got ot start planning now. You don’t take £2.2 million out of a £14 million budget very easily.”