Leader of Cumbria County Council Stewart Young outlined the planned budget to the full council in Kendal today.
He spoke of the "difficulties" for Councillors and staff in delivering millions of pounds worth of savings.
He says they have less staff "dealing with an increased demand in services."
But in the midst of the massive savings, Stewart Young is proposing the Council pays staff a "living wage" from April.
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The family of Christian Pay, who died on Friday after suspected substance abuse at a festival, have paid tribute to the Millom teenager.
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Christian Pay's family say he was "loved by all" and had "the heart of a lion". The 18-year-old died after falling ill at the festival.