Kent County Council says it could still become insolvent if it does not act to address a rising deficit that has plunged the authority into the red.

Finance chiefs have warned that the savings agreed in its budget just one month ago may not be achievable.

They say if the authority does not act, it could be forced to issue a Section 114 notice, restricting what it can spend money on.

KCC is responsible for a number of services including education, transport and social care.

Cllr Peter Oakford, the autority's cabinet member for finance, delivered a sober assessment of the challenges ahead, revealing that the authority was running a deficit of £53.7m.

He said: “I and others are having an increasing level of concern that before the new financial year has even begun, we are already hearing reports that directorates are questioning the achievability of some of the budgets and the savings that it contains.

"Very simply, this is just not acceptable if KCC is to avoid a 114 notice, and I think everybody understands that. We cannot sustain the finances on another financial performance in line with the current year.”

A report monitoring the authority’s spending revealed that the greatest pressure on services lay in the the need to care for many more physically disabled young adults.

Mr Oakford said there was a sliver of good news as the £53.7m represented a reduction of some £7m in the overspend.

However, he warned that bridging the gap with money taken from reserves was not sustainable.

He said the single biggest pressure on budgets continued to be the money needed to provide support to high needs children.

That had risen by a further £41m to bring the total overspend in the budget to £142m.

And he revealed that the council’s savings target of £53m in last year’s spending programme had not been met - with only £36.8m saved.

KCC has struggled to balance its books in recent years as it faces increased demand for services at the same time as government cuts began to bite. It has also faced inflationary pressures, such as the cost of fuel and energy.

A 114 notice prevents an authority from spending money with the exception of money for safeguarding vulnerable children and adults. Councils are by law required to balance their books