Council chiefs will axe £500,000 earmarked for investment in Ramsgate port - if no deal for a new service to Ostend is confirmed within weeks, it has emerged.

Thanet council’s Conservative-run cabinet will recommend the move to help balance its books in 2019-20, according to a report due to be considered in the coming days.

The threat comes as high-level talks about the viability of the new ferry service as part of contingency plans in the event of a no- deal Brexit to ease the pressure on Dover are due to take place on Tuesday.

According to cabinet papers, council chiefs say unless they get confirmation that there is to be a new service, they will look to withdraw £500,000 that the council had planned to invest, along with saving £130,000.

The report on cost-cutting measures states: “The largest single item is related to the port, which is proposed to have £500,000 growth removed and a further £130,000 savings, totalling £630,000 - or £730,000 in a full year.

"This recognises that in the absence of a ferry operation, the port will undertake significant cost reductions to start to reduce its budgeted deficit.”

It adds that the key decision point for the port is in just three weeks when the council is due to set its budget.

“If there is not a confirmed, contracted ferry operation by the end of January when the council budget report is published, the cost savings will be recommended and if approved, will be actioned.

"Any further delay would require alternative savings be identified, which is too late to inform the presentation of a balanced budget to council.”

Council chiefs are due to hold talks this week with the ferry company contracted to run a post-Brexit ferry service between Ramsgate and Ostend amid continuing uncertainty that it will be ready in time.

"We must be realistic, I cannot imagine this ferry will be launched in March" - Mayor Bart Tommelein

The talks will also involve the Mayor of the Belgium town, who is travelling to Thanet to take part.

Representatives of Kent County Council and Thanet council, which owns the port, and Seaborne Freight will attend.

Mayor Bart Tommelein says he believes that it is not realistic to expect the company Seaborne Freight to meet the deadline for the route to start in time for the UK’s Brexit deadline.

Ahead of his visit, he said that while Ostend wanted to see a ferry service between the two areas, there were unanswered questions about a range of issues, including assurances over the company’s finances.

“I hope the meetings I will attend in Ramsgate will shed more light on the situation. But we must be realistic, I cannot imagine this ferry will be launched in March,” added Mayor Tommelein.

“Ostend is a maritime city. The new city council is in favour of a ferry line between Ostend and the UK.

"We think it could create added value for our city.

"But we want guarantees regarding the profitability of such a ferry line and of course the solvency of the company.”

The government has faced criticisms over its decision to award a contract to Seabourne Freight, which is now dredging at the port so it can be used by ro-ro ferries.

The company - which owns no ships and has never run a sailing - has controversially been handed a contract worth £13.8 million.

Transport Secretary Chris Grayling said there would be no taxpayer cash for the firm until they provide the service.

The controversy was highlighted by union officials on Friday, with protests outside the Department for Transport offices.

RMT union wants assurances that any new ferry service will be crewed by British workers.

General Secretary Mick Cash said: “There has been a barrage of publicity around the Government’s Brexit ferry contracts and the union has written to both Chris Grayling, who is in control of the arrangements, and the companies involved demanding basic assurances on UK ratings jobs, union recognition and full compliance with UK employment laws.”