Leicestershire County Council has announced it must make an extra £40m in savings due to increased pressure on budgets.
The council said rising demand in services and reduced grants has pushed its savings target up to £120m.
Cllr Byron Rhodes, the council’s lead member for resources and deputy leader, said: ‘The council is facing an increasingly serious financial situation and that will impact on services. We have to save £120m and, of that, £50m hasn’t been identified yet.
‘Although we’ve met our savings targets so far and are better placed than most councils to meet these challenges, we have a big problem within the next two years.’
Cllr Rhodes said unfair funding from the Government meant Leicestershire received £37m less than the average county council.
On 19 September, the council will consider savings proposals such as reducing funding for voluntary support agencies, ending the subsidy for community meals, changing preventative adult social care services and reducing library opening hours.