A ROW has erupted over claims by Kent County Council’s ruling Tories that the authority is “owed” £14.8million to cover the costs of looking after child asylum seekers.

Opposition parties have disputed the claim and have revealed that KCC has been “overpaid” around £18million in general grants – money they say ought to make up for any shortfall.

KCC Tories say the £14.8million is a result of Home Office grants the authority was supposed to receive to support its asylum costs, chiefly for unaccompanied minors, stretching back over three years.

Despite efforts to resolve the wrangle, it has emerged that vital Home Office papers and data have gone missing. The documentation is thought to account for around half the sum KCC says it is owed.

Kent County Council leader Sir Sandy Bruce-Lockhart (Con) said the system was in chaos.

He stressed: “The Home Office does not seem to know what is going on and we are still trying to settle the money owed to us from 2002-2003.

"Background papers have been lost at the Home Office and its staff turnover means you never meet the same people twice.”

But opposition Labour councillors highlighted an £18million “overpayment” KCC received this year because of a miscalculation over general grants.

Labour leader Cllr Mike Eddy said: “KCC has been told that money can be used as a float for any element where there is a shortfall. The Conservative claim is simply a trick they produce before every election. If this money was owed back in 2002 and 2003, why didn’t KCC raise it then?”

Conservative finance spokesman Cllr Nick Chard denied the £18million could be offset against the asylum money it was owed.

“This is not money specifically for asylum. There was a clerical error and the Government gave us £20million instead of £2million in grants. All they have done is tell us that it will be taken off our next installment,” he said.