More privatisation of key services for thousands of residents is on the cards as Kent County Council revealed it needs to plug an estimated £240million funding hole over the next four years.

The ruling Conservative administration today said the continuing public sector spending squeeze meant a change was needed, with KCC commissioning services rather than providing them itself.

The approach will mean more outsourcing and privatisation of services to a mix of private companies, businesses, voluntary groups and so-called social entrepreneurs.

Details of what might be hived off to the private sector are expected to be revealed in the autumn.

Council leaders argue the move represents the least-worst option and that, on its own, KCC would be unable to deliver the scale of savings needed over the next four years.

But unions moved quickly to denounce the strategy, saying it would mean job cuts and poorer services.

Opposition Labour and Liberal Democrats warned private companies would cherry-pick services to run and ignoring those not commercially valuable.

KCC leader Cllr Paul Carter (Con) said the council was facing up to the challenge after the government announced town hall budgets would be slashed by a further 10%.

And he was adamant KCC could maintain all services, saying he was determined not to take the easy option of axing discretionary services and was open-minded about what could be done by other groups or companies.

"I am determined to make sure that we listen to our customers and preserve the services they value. That includes non-statutory services. I am not prepared to put up the white flag until we have really squeezed efficiencies out of the organisation."

He added: "Just because you are spending less money does not lead to the conclusion that you will end up with inferior services."

David Lloyd, secretary of the Kent branch of Unison, said: "There are inherent problems with outsourcing and privatisation, as the experience of other councils has shown."

Labour group leader Cllr Gordon Cowan said KCC should increase council tax to safeguard services. "I am not in favour of privatisation," he said. "It ends up with less money for the service and more money via fees for the company that runs them."

UKIP opposition leader Cllr Roger Latchford gave the plans a cautious welcome. "I am convined this is the best possible way forward."

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