Birmingham City Council has announced it needs to make a further 900 job cuts and slash £110 million from its budget in 2013.
Initially the council believed it would need to save £70 million next year, but this has now risen by £40 million because of reduced funding from the Government and rising costs.
Council leaders released their budget for 2013/14 this morning. Thirty three million pounds needs to be cut from its adult services department - which helps the disabled, vulnerable and elderly, and 24 million from the budget set aside for children and young people.
The leader of the Labour-run council, which is the largest local authority in the country, warned of the wider funding gap to come in the next four years,
Sir Albert Bore described the task ahead as peering into the 'jaws of doom', as the council has to save £600 million by 2017.
Cuts have been made across the council's departments, but he says in 2014 entire council run services will have to be shut down.
The council have blamed the Government's austerity measures and reduced funding for the measures.
It also claims taxpayers are being short changed by Ministers as the average amount having to be saved by Birmingham City Council is double than by other councils around the country.
The average each council is having to save is equal to £74 for each taxpayer.
But in Birmingham that doubles to £149 per person, meaning a shortfall in funding of £80 million per year.
Unison have said they will support the council and take the fight to Westminster to lobby for more money.
The consultation process will soon start for members of staff at the council who are facing redundancy, with those affected issued with Section 188 notices.
Sir Albert Bore says the Government has forced councils to come to a crossroads, as they simply can't cut any more without losing essential services.
He went on to issue the stark warning that he believes further cuts will damage the West Midlands' economy, and make Birmingham a worse place to live.
In the autumn statement yesterday, Chancellor George Osbourne said he's sticking by the austerity plans to get the country out of trouble.
In response to Sir Albert Bore's comments, Local Government Minister Brandon Lewis said: