Stunned Medway Council chiefs estimate they have lost £15 million from the government settlement.

They expect to spend several more days understanding the new grants as they are released from Whitehall, while schools budgets are still awaited.

Government cost-cutting is expected to hit family services in deprived parts of Medway.

It is also likely to wipe out low-key efforts to integrate eastern Europeans into the community.

"This is not to Medway's benefit," said a solemn-faced Cllr Alan Jarrett, the finance portfolio holder for Medway. "We shall have to closely analyse this to see what it eventually means for Medway."

The council's cabinet will meet on Tuesday, December 21, to be briefed on the spending limits being imposed by Eric Pickles, the local government secretary.

A new budget has to be approved in late February, but Cllr Jarrett has already promised it will see no increase for taxpayers.

If that happens the council will receive an extra £2.5 million from the government.