Medway councillors are being told they face an extra £40 million in bills – just as the Government orders it to cut spending even more harshly.

Rocketing fuel bills, bus passes and a promised park and ride network, an ageing population, mounting salary claims and falling income caused by the threatened recession are costs and expenditures being blamed.

A report from the chief finance officer, Mick Hayward, warns there is no longer any cash left in reserve.

The costs are still being worked out, but radical changes may be needed.

The council spends more than £500 million a year, but is one of the lowest taxing unitary authorities in the country, and the cheapest in Kent.

Mr Hayward told councillors: “It will be necessary to identify areas where efficiency savings can be made and/or more radical changes to the services, which the council is able to afford to deliver.”

Higher council tax rates are out – the government is maintaining capping limits even though Medway is the 15th lowest taxing council in the country.

* More on this story in Monday's print edition of the Medway Messenger.