Services provided by Norfolk County Council might have to be pared back to the bare minimum because of measures introduced in the budget, its leaders have warned.
They say the increase in national insurance contributions from employers mean it will have to make even more cuts in addition to the £45m it was already planning.
Andrew Jamieson, deputy leader at County Hall, said the changes introduced by Rachel Reeves, the chancellor, meant the council was edging ever nearer to being able to only offer services it is bound by law to provide, like social care and road maintenance.
This puts at risk all spending on things like adult education and museums and could trigger more cost-cutting measures at recycling centres and libraries.
Mr Jamieson said: "Unless future plans to reform local authority funding delivers fair and sustainable funding of local government, we're going to have to shrink back to services at a statutory minimum across the board.
"I don't want to go there, but that is where continued government inaction will take us."
READ MORE: Norfolk council's budget gap could spark council tax hike
In last month's budget, Ms Reeves said there would be a "significant real-terms financial increase" in local government spending, with at least £600m for social care.
Mr Jamieson said the council was unlikely to know how much it will get in grants until December.
But he said the national insurance changes would increase council costs by leading care providers - used by the authority to provide social care for adults and young people - increasing what they charge.
"The gap will increase as a function of that decision by the chancellor to put money on national insurance contributions," he added.
"We are still working out how much. We are speaking to contractors, particularly in adult social care and we are in that stage of negotiations.
"But I think it is absolutely fair to say that there will be a further increase and further pressures in this year's budget."
Liberal Democrat leader Brian Watkins said local government was "closer to the edge" than ever before, with a number of councils having effectively declared bankruptcy.
The Conservative-controlled council made £44m of cuts and savings this year and had identified £33m towards a further £45m next year to balance its books.
The council is currently carrying out consultation, ahead of setting its budget next year.
Proposals include a council tax rise, turning off a thousand street lights and cutting £2m from spending to prevent homelessness and provide crisis accommodation.
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