KENT County Council says it is facing a £40million "hole" in next year’s budget.

County Hall’s Conservative administration says it is determined to do what it can spare key frontline services from the axe.

But the council’s leader issued a stark warning that continued government under-funding meant the cash crisis was reaching breaking point.

Cllr Paul Carter (Con) said options for saving the money were already being considered.

Speaking at a full council meeting today he said: "I am trying to solve the massive [financial] mountain we have to find to preserve our excellent frontline services and the £40million hole in next year’s budget against a backdrop of a government settlement that, in real terms, means we have had no growth.

"We have to find savings of £40million without even adding in signifcant problems like the pressure on adult services caused by an ageing population."

And he sounded a warning about the prospects of avoiding service cuts in the future. He said: "We might just about solve next year’s budget but if this nonsense continues, the elastic is very close to breaking point."

His complaint that the government was short-changing KCC was supported by Liberal Democrat leader Cllr Trudy Dean. She told the meeting the authority’s plight was just as bad as it had been when the former Conservative government reined back spending on local government in the 1990s.

"The council will clearly be in an extremely difficult position when the amount of money we have been given is not enough to allow us to continue to provide services," she said.

But Labour opposition leader Dr Mike Eddy accused KCC of exaggerating its problems. "When you look around Kent, I see quite a lot of money being wasted," he added.