Lichfield District Council has been warned that the financial risks it faces are “severe”.
The Government are set to announce further reductions in funding to local authorities next month.
Chancellor George Osborne is set to trim back the money made available to councils as part of predicted plans to cut expenditure by £27billion over the current parliament.
And now a report to Lichfield District Council’s audit committee this week has warned things could get tougher for the authority.
“The financial risks facing the council continue to be severe,” said the report.
“The council is taking actions to manage and reduce the severity of this risk.”
Lichfield District Council has already shaved £1.8million from its budget since May 2013 through the controversial Fit for the Future programme.
And the report says the authority must look for even more savings.
“The risk will be mitigated by the process and actions of the council will complete under the Fit for the Future programme to ensure that it balances the budget,” the report added.