Council chiefs in Sheffield say although the city's finances have been hit hard by the impact of coronavirus, the authority can cope.
The council has lost money with business rates, car parking charges and leisure centre closures while it's also had increased Covid-related costs such as providing PPE in care homes.
It has an overspend of £23.4m, of which £18m is related to Covid. The council describes it as "a serious concern" but says it has enough savings to survive.
Mr Phillips said some costs wouldn't hit until next financial year and to date, the council was expecting £34m of government funding with possibly another £10m on the horizon.
But he warned the government would need to give much more financial help.