INFLATION-busting council tax bills are looming for Kent residents next year, council leaders are warning.

And County Hall may have to cut several hundred administration jobs to meet Government targets at the heart of a three-year efficiency drive.

Kent County Council Conservative leader Sir Sandy Bruce-Lockhart said the Government’s three-year public sector spending plan would force up average bills by at least six per cent next year. Last year, KCC bills rose by 5.2 per cent, putting an extra £42 on average bills.

However, Treasury forecasts suggest the Government expects the amount of money raised via the council tax to rise by between six and seven per cent in 2004-05.

But that could increase further. The Government’s forecasts in its spending review do not take into account the fact that KCC is unlikely to see Government grants it gets for services increase to reflect population changes.

The county council has been lobbying ministers to take into account the latest census data when calculating grants.

Neither has the Treasury decided to include extra money awarded to schools last year – in Kent’s case, £12m – in its spending review. That money came only after schools warned of serious shortfalls in their budgets.

Sir Sandy said the Government would have to increase grants to ease the pain on taxpayers: “Council taxes will have to rise by six or seven per cent. That is too high for residents to bear. An increase which is three times the rate of inflation is wrong.

“I am concerned the government’s spending plans are not matched by increased grant to councils. This leaves the councils and the council taxpayer to fill the shortfall,” he added.

Meanwhile, opposition Liberal Democrat leader Cllr Trudy Dean has warned the Government’s spending review implied KCC would have to lose 400 jobs.

She said: “The 100,000 jobs the Government want to go in its efficiency drive include 20,000 working in local government. We are looking at potentially 400 jobs in KCC. I suspect most of those jobs will come from education.”

Opposition Labour group leader Cllr Mike Eddy dismissed the predictions, saying the Government’s plans amounted to more than £7bn more for local government by 2007-08.