The county council will find out today how much the crushing impact of the credit crunch will cost.

Councillors meet in Margate this afternoon and will be told how the authority's £1.5billion budget will be affected by the double whammy of rising fuel and energy prices, coupled with the current economic downturn.

It is feared that unless steps are taken to rein in spending, the authority will have to find an extra £25million to pay for vital services this year.

A report to be presented to the Conserative administration’s cabinet today raises the prospect of major building projects, some involving schools and road schemes, being put on hold because falling property prices means KCC expects to get far less money from selling off land and buildings than it hoped.

Spiralling fuel prices will be one of the authority’s biggest problems, with the report estimating that will add £12million to KCC’s costs.

Ferrying 23,500 pupils to and from school is expect to far exceed the original budget of more than £21million, and as are the costs of dealing with household rubbish, public transport and car allowances paid to staff.

Cllr Nick Chard (Con), KCC’s cabinet member for finance, said: "We have recognised the problems early, so it easier to deal with. Frankly, this is not something that is short-term.

"The implications will be with us for years."

Asked if KCC would be able to avoid cuts to services, he said: "I can never give any categorical assurance. This year, the pressures are going to be so great, that it will be even more difficult than before."