Kent County Council insists it remains confident that it can balance the books despite a report that shows it already has a financial budget black hole of £43.7m this year.

This latest overspend is being fuelled chiefly by the continuing rise in demand for support from vulnerable adults and children. Management savings of £26.7m has helped cut back some of the overspend.

County Hall leaders will meet this week to sign off on a blueprint to save millions of pounds more.

But it remains unclear exactly what measures the Conservative-run authority could implement and a report setting out the current level of demand plus increased costs says managers will need to set out detailed savings in October.

Unlike some authorities, the county council says it has no plans to issue a Section 114 notice, a move that effectively means the authority would only be permitted to spend on essential services.

KCC leader Roger Gough said urgent savings were needed: “KCC is, like many councils across the UK, dealing with an extremely concerning financial position.

“However, I am confident we can find solutions, make the necessary savings and, most importantly, secure Kent’s future. We are leaving no stone unturned and remain confident we can identify and deliver these savings and ensure KCC continues to be a sustainable local authority that delivers for Kent residents.”

He added: “Our finances are under enormous pressure, as we endeavour to keep critical frontline services running in the face of these sharply rising costs and increasing demand. We need to make urgent savings in the remainder of this financial year from spending reductions and increased income, in order to ensure that we balance the budget, without the reliance on reserves.”

A 36-page report describes the need for a short-term reprioritisation of all council activity “to support bringing the budget back into balance, with a significant focus on the transformation of both adults and children’s social care.”

But it warns that it would be critical to ensure this year’s budget did not take any money to prop up services from a £12m risk reserve as it would further weaken our financial resilience.”

A report on how much KCC has been able to save will be presented to the Conservative cabinet in October.