by political editor Paul Francis

Chancellor George Osborne has set out where the spending axe will fall - with 19 per cent being cut from the government's budget over the next four years.

Kent families and workers are in the frontline of cuts, as local authorities get their calculators out to gauge how far the axe must swing.

Speaking during today's Spending Review, Mr Osborne confirmed an extra £2bn has been pledged for councils to look after the elderly and vulnerable.

The money will go to social services authorities like Kent County Council and Medway, who are facing a rise in demand for care as the elderly population continues to grow.

Kent's rail commuters will face increased annual hikes in fares from 2012, Mr Osborne announced said.

At present, the annual increases in regulated fares, which include season tickets, are capped at one per cent above the retail price index (RPI) inflation level.

Anthony Smith, chief executive of Passenger Focus, said: "This level of price rises puts the spotlight on industry performance.

"For such prices passengers will rightfully expect punctual, clean trains with a reasonable chance of getting a seat."

Osborne says that from 2012 the cap will be RPI plus three per cent which - if introduced for next January - would have meant season tickets going up almost eight per cent.

He says the rise is needed to pay for new trains and improve passenger conditions.

Audio: KM political editor Paul Francis on the Spending Review

Kent's schools will see a real term cash increase in their budgets each year until 2015 as the government pledged that schools budgets will rise from £35bn to £39bn.

Mr Osborne said: "An increase in money for schools each year over the next four years."

The M25 will be widened at ten junctions - but which ones they are hasn't been revealed yet.

Ringfencing on council spending will end with a 7.1 per cent cut each year over four years.

However local authorities will gain freedom to take more decisions on how they spend it.

"We are proposing massive devolution of financial control. Ringfencing of all government grants will end by April next year." said Mr Osborne.

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How that will affect KCC will emerge later.

Nationally, the police will have to make savings of four per cent a year. Kent Police has already revealed it could lose up to 1,500 staff.

Kent's Chief Constable Ian Learmonth said: "Although the government has announced the national review of spending the precise details of how it affects police forces are not yet available.

"Until we receive those details we are unable to make any final decisions about the policing model for Kent in the future.

"However we do know that all forces will face a significant financial challenge in the future, and we have been reviewing every area of our business and every budget.

"Whatever changes are made we will continue to deliver the same quality service to the people of Kent."

There will be:

* Extra money from rail fares to pay for new rolling stock

* £15.bn to refurbish schools

* A £200m investment in offshore wind technology

* Free entry to museums and galleries will continue

* £1bn will be set aside for a "green" bank

* TV licence fee will be frozen for six years

* The M25 will be widened

* The pension age will rise to 66

* Crossrail will go ahead

* More investment in adult apprenticeships

* An extra £0.5bn for the Regional Growth Fund

* The government's Sure Start scheme will be protected

* One per cent of savings in the education budget

* Universal benefits for pensioners will be kept

The Ministry of Justice's budget will also be cut by £7bn - which could put the final nail in the coffin of a series of Kent courts earmarked for closure.

Widespread job losses across Kent, alongside deep cuts to services and the cancellation of more building projects, were all expected.

Some of today’s announcements were already been heavily trailed.

The Chancellor's proposals are to tackle the country’s national deficit and bring down the levels of debt by chopping around £83bn from government departments.

Speaking before today's announcement, Cllr John Simmonds, KCC cabinet member for finance, said: "It is going to be a balancing act.

"If the government cuts specific grants to us, that is where we will have to cease funding to some of the services we have provided."

On the impact on jobs, he said: "We have not been filling vacancies for some time, knowing what is looming.

"The impact on jobs may be higher than it is on people but nevertheless, there will be many jobs going."

Medway Council also believed it could fare badly in the Spending Review before it was announced.

Cllr Alan Jarrett, deputy leader, said: "As we have less money to play with than many other councils, any reduction in our funding will undoubtedly have a big effect.

"In fact that effect is likely to be disproportionate comparing Medway with other councils.

"And as we, like any other council, are a people organisation, major reductions will inevitably impact on our employees."

Meanwhile, union representatives say public sector staff threatened with redundancy will battle to protect services and jobs.

Zoe Van Dyke, regional organiser for Unison south east, said: "Residents are going to see cuts in services the like of which they have never seen before.

"I am certain there are going to be many of our members who will want to take action. People are beginning to recognise this will be the biggest battle they have fought for 30 years."

She added that large-scale redundancies would hit the local economy.

"The likelihood is that there will be a dip in the economy because thousands of people will not be contributing to the economy.

"If you take a place like Maidstone, where there is a large concentration of public sector workers, sandwich bars and other businesses are all more likely to go out of business."

Where would YOU suggest the cuts should take effect in Kent? Post your views in the comment box below.