KENT County Council has upped the stakes in a row over money it says it is "owed" for looking after asylum seekers by threatening legal action against the Home Office.

KCC says it has yet to be paid £14.8million from the Government in grants it is entitled to for looking after child asylum seekers.

The money dates back over three years and KCC has insisted the costs must be refunded by central government.

Now the county council has written to the director of the National Asylum Support Service - NASS - giving it 28 days to come up with the money. NASS is the Government agency charged with managing and dispersing asylum seekers.

In a strongly-worded letter to Jeremy Oppenheim, the director of NASS, KCC’s solicitor Geoff Wild says the council has been "placed at a significant disadvantage and suffered sever financial loss" as a result of NASS’ "delay, negligence and broken promises on behalf of Government."

He writes: "This situation cannot be allowed to continue indefinitely. As a result, I invite you to propose a resolution to all the outstanding issues...within 28 days, failing which the council will have no alternative but to seek legal redress through the courts."

He goes on to state that "there has been a signal failure by government to honour its promises and assurances given in respect of the funding to be provided to this council. The position has now reached a critical point whereby unless a resolution is found legal action will become inevitable."

County councillors were told of the development at Thursday’s full budget meeting.

County Hall’s Conservative administration has insisted that the costs should not fall on Kent council taxpayers.