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by political editor Paul Francis

Kent County Council says it is facing the prospect of a £200million shortfall in its finances over the next three years.

Between 600-700 jobs could be lost over the period as it strives to pare back costs in anticipation of a far-reaching squeeze on public spending.

While some compulsory redundancies are likely a far larger number are expected to disappear through natural wastage and not replacing staff who leave.

Council chiefs have warned the next three years will be one of the most challenging periods for County Hall finances - regardless of which party forms the next Government.

Significant job losses are not anticipated next year. The bulk will come in the following two years, with a focus on slimming down so-called 'back office’ departments.

Despite the grim outlook, County Hall’s ruling Conservative administration is confident the axe will not fall on its key frontline services.

It is also aiming to keep council tax bills down, with any increase expected to be below the 2.4 per cent increase last year.

It has already identified nearly £42million of savings from next year’s budget, but a further £10million still needs to be cut.

Directorates have been instructed to come up with proposals for saving the cash over the next few weeks.

Cllr John Simmonds (Con) KCC cabinet member for finance, said every area was under the spotlight in the drive to save money.

“It is not all about cutbacks. We believe there are things we can do differently but as efficiently. We are trying to look ahead because if we do not, we would have to slam the brakes on hard. None of the frontline services will deteriorate [but] may change. We are striving to make it as painless as possible.”

He would not be drawn on reports the council was aiming for a zero increase in council tax bills.

“We are very conscious of the impact on people with fixed incomes and the recession. [Any increase] depends on how successful we are in making savings.”

As part of its cost-cutting options, there could be increased charges for some services and fewer concessions for others, such as discretionary services. KCC, which has an annual budget of £1.5billion, is also looking to cut back on office accommodation and share premises with other public sector partners, like the NHS.

The council also expects the squeeze to hit its huge £1billion investment in building projects and other capital schemes, with a 40 per cent cut in Government support projected over the three years. Some could be delayed or re-phased as a result.

Cllr Simmonds said KCC remained committed to the capital programme, saying it created work for many local employers.

KCC is the latest of several councils in Kent to signal that there are tough times ahead. More details of its budget plans are expected to emerge over the next few weeks.