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The figure for 2013/14 is based on the council’s forward planning and government forecast and is said to be due to cuts in government grants, lack of parking income, a likely two per cent limit on council tax increases and the take-up of concessionary bus passes.

The Council is putting a range of measures in place to help tackle the crisis in its budget.

Council Leader, Robert Bliss, said it had already put measures in place to make savings.

“We’re ahead of the game. We are cutting costs by sharing services with other councils in East Kent. Human Resources and payroll services are being shared between Shepway, Canterbury, Dover and Thanet; landlord services will be shared with the four of us and Ashford, and we will be working with Dover on a joint waste and recycling contract. Other parts of Kent are now following this example.”

The authority is also looking at increasing revenue through parking by introducing more on-street charges, charging at car parks, which are currently free, reviewing council-owned car parks and dumping those that lose money.

It is also considering council property being let or sold and putting services like waste collection and street cleaning, toilet cleaning, Council Tax recovery, and ICT out to contract.

Council staff may also be hit by freezing or re-thinking pay awards.

“Services will be squeezed even more than they already have. We will look at our statutory services and at what level we deliver them, and at our discretionary services. It is not a foregone conclusion that discretionary services will automatically be cut. We will try to protect those services that mean most to local people.

“There are tough decisions to be made but I am confident that we are up to the challenge,” said Cllr Bliss.