COUNTY council chiefs are looking to save nearly £18million in next year’s budget as they strive to handle the effects of a huge shortfall in Government funding.

Conservative council leaders have instructed officers to draw up plans to save £17.9million next year, prompting fears of cuts in services and further job losses.

The outlook for the county council could be equally bleak in the following two years when finance chiefs estimate that they may be £26million short.

County council leader Sir Sandy Bruce-Lockhart (Con) said KCC was determined to keep down council tax increases but admitted the authority faced major challenges.

“Our first priority is to keep the council tax rise down and we are determined to do all we can to achieve this. The public cannot afford the levels of increase we have seen recently. The council must bring in a widespread package of savings and we have asked for an initial £17.9 million to be found.”

The stark prospects facing Kent County Council are set out in a report detailing its budget strategy for the next three years.

The report, presented to KCC’s Conservative cabinet on Monday, says millions of pounds must be saved because of an expected shortfall in Government funding.

The report estimates KCC will have to save £17.9million next year, followed by £15.6million in 2005 and £10.7million in 2006. Kent expects to get a 2.5 per cent increase in Government grant in 2004-2005, bringing its budget to £1.2billion.

However, finance chiefs say KCC will have to increase spending on services by nearly eight per cent – three times the rate of inflation - because of various pressures.

These include increasing demand for services; demands placed on the council by new government legislation and higher wages and prices.

Spending on social services will come under particular pressure, the report states.

A recent legal judgement on who pays to look after child asylum seekers when they reach the age of 16 could cost KCC £13million alone, while it could lose a further £9million in grants for children because the Government is using out-of-date census information.

In education, KCC predicts schools will be £15million short of what they need in 2004-2005 – broadly the same deficit they faced this year. Heads have already warned of staff cuts as they struggle to balance their books.

Opposition Labour group leader Cllr Mike Eddy said he did not accept KCC’s analysis and accused the Tories of trying to lay the blame for council tax increases on the Government.

“This is the usual shroud waving from KCC we see every year. No matter how much the Tories get, it is never enough. The amount of money coming into KCC is going up year-on-year, unlike when we were under a Conservative government when it went down.”