by political editor Paul Francis

Kent County Council will have to save £104m next year to balance the books – 50% more than anticipated.

County Hall finance chiefs say they are already on course to save a substantial chunk of the money – some £67m – but have yet to identify how they intend to plug the gap that has emerged.

Last year, KCC said it expected to have to save £62.9m in 2012-2013. But its latest forecast puts the figure at £94.4m.

At the same time, it will lose £11m in government grants next year.

That will increase concerns that KCC will struggle to protect key services from the axe and further job losses – on top of the 1,500 already going – could be on the cards.

Finance chiefs remain optimistic they can avoid slashing services but admit there will be changes. The authority's spending plans are due to be unveiled shortly.

Cllr John Simmonds, cabinet member for finance, said: "It's about changing the way we do things. I don't think there's going to be anything dramatic in terms of loss of services. I don't think the public will notice anything different."

The authority's outlook is bleaker than expected because of what it describes as an unavoidable rising demand for some services.

In particular, it has had to find £22m for a drive to turn round failing childrens' services. KCC says that could not have been foreseen at the time it set out its earlier forecast.

Cllr Simmonds said: "The pressure on children's services was an unexpected one. We did not think we would have to find £22m for that."

A report setting out the financial prospects for next year says the savings needed represent a substantial challenge and strikes a pessimistic note about the longer-term outlook.

"The magnitude of these savings is much greater than we have had to achieve in the past and has to be sustained on a year-by-year basis. The strain on members, staff and customers will be significant."

It warns that KCC may need more radical action than many other authorities because it relies more heavily on the contributions of council taxpayers to meet its costs. With bills being frozen for a second successive year, that income remains static.

KCC's cabinet will consider the report at a meeting on Monday.