ESSEX County Council has warned of "tough times" in 2010 as it prepares to announce its new council tax rates.

The news come as the authority's proposed budget for the next financial year is expected to be revealed within days, ahead of a cabinet meeting next Tuesday (January 26).

Today, the council's member for finance, Cllr Sarah Candy, issued a statement hinting of tax rises amid "challenging" and "tough" times for the authority.

She said: "We understand fully how many families are struggling in the downturn which is why we are doing everything possible to keep council tax as low as possible.

"However, as other councils including some of our neighbours who have already announced above inflation increases for next year show, this is not going to be an easy process."

A spokesman said increasing demand in care for the elderly and widespread damage to the county's roads following the bad weather represented rising costs for the council.

He said: "the coming year will see unprecedented challenges and difficult decisions given the state of the public finances combined with ever increasing demands on services."

Cllr Candy added: "Essex has in place the largest savings programme of any council in the UK and this year we are on target to deliver £85m in savings, efficiencies, and increased income.

"However we are still facing unprecedented challenges given the state of the public finances.

"We are also seeing demands for particular services such as elderly care increase year on year.

"We are though absolutely committed to delivering value for money and that is why we have literally been through the budget line by line to see where savings can be made.

"And we are also transforming how Essex County Council operates to again deliver further savings and enhanced services."

Following next week's cabinet meeting the budget will then have to be approved by the full council on Tuesday February 9.