Kent County Council insists there will be no panic measures as it strives to cope with the economic downturn and rising prices which could cost £25million.

County councillors have been warned that their will no easy options as the credit crunch puts increasing pressure on their £1.5billion budget.

Up - fuel prices by an extra £12million.

Up - the £16million bill for transporting 20,000 pupils to and from school has already soared by £480,000.

Up - the £15.4million cost of transporting pupils to special schools is rising by £481,000.

Up - the soaring price of electricity means KCC will have to find £1m more when a new contract for looking after 100,000 street lights is awarded later this year.

Down - plummeting property prices will mean KCC will get far less from selling land and buildings which could mean major building projects being put on hold.

£5million injection A report to KCC’s cabinet has warned that the council could need £25million more for services this year if steps aren't taken to rein in spending. To help cushion the blow, KCC is to use more than £5m of money not spent last year.

Cllr Nick Chard (Con), KCC’s cabinet member for finance, said the council was responding swiftly, but it was impossible to give “categoric assurances” that services would not be hit. He also warned the problems would continue for “years to come.”

County council leader Paul Carter (Con) said while action would be needed to bring costs down, KCC would “not go into panic mode”.