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Council workers will not be getting a pay rise until at least April 2011 and a total of 465 council jobs are to be cut over the next two years in the proposed budget.

Leader Paul Carter said the authority faced a tough three years as it tried to save more than £200m from its overall budget of £2.2bn.

The KCC Leader said: “Tribute must be paid to our staff – who have yet again been judged to be the best in the country by the Audit Commission – for helping us to develop this budget. It has been exceedingly difficult to arrive at a council tax increase for next year that balances the very real difficulties our residents are facing and the knowledge that a major funding squeeze is coming – whoever wins the next election.

"Currently we are looking at an increase of 1.86% but we have had to reluctantly add another 0.71% at this stage (i.e. 2.57% in total) to cover our Asylum costs, as we are still waiting for clear Government assurances on meeting all of our costs. Asylum is a national issue and we believe it is morally right that these costs are met nationally and not by Kent.”

Cabinet Member for Finance, John Simmonds speaking about the Government Grant said: “The 3.2% increase in our grant is welcome but does not go far against the unavoidable costs we face. Year after year we get less funding than the average county council and had we been treated equally since we highlighted the issue in 2002/03, our annual grant would now be some £70million per year more. It is incredibly frustrating.”

The budget, which will need to be approved by the Council’s Cabinet on 1 February and the County Council on 18 February, is expected to keep Kent’s Band D tax lower than the majority of county councils.

Based on a 2.57% increase the KCC element of the council tax bill for Band D properties will increase from £1,026 to £1,053 (50p a week). If we receive assurances from Government on unmet Asylum costs the Band D would increase to £1,045.

Depending on the outcome of the Asylum discussions, the increase of 1.86% is below the government’s previous capping limit of 5% and the April increase for state pensions (2.5%).

Responding to the publication of Kent County Council's draft budget , Trudy Dean, Liberal Democrat Leader of the Opposition on Kent County Council, said: "In Spring KCC was criticised by the Audit Commission for being careless with £50 million of tax payers money in Icelandic banks. In July they awarded councillors an 8% increase in allowances whilst limiting staff to 1%.

"In the last month residents have been infuriated by KCC's failure to clear roads and pavements of snow and ice. They will have to work very hard indeed to convince any tax payer that there should be any increase in Council Tax next year at all."

"Lib Dems will be examining the detail of the budget to make sure there is no more continuing waste. We shall oppose any further spending on KentTV, and the HealthWatch scheme which costs £600 per enquiry. We shall be looking for further cuts in the Public Relations budget which is one of the highest of any Council in the country."