Middlesbrough's mayor has warned the council faces cuts across the board to tackle a "monstrous challenge" in its finances.
Andy Preston told councillors the council's 'money situation is horrendous', with a £9 million overspend for 2022.
This has been put down to wage increases, inflation and high levels of demand for children's services in the town.
Mr Preston told the overview and scrutiny board meeting the council was facing with a difficult period.
He said: "Our money situation is horrendous. Just recently, I was made aware that we had a massive problem this year, and the problem next year is huge and scary.
"Don't get me wrong, we can manage it and live with it but it will mean massive reductions and it will mean some cuts to what we are doing. Nothing is going to be left unscathed, so we have got a monstrous challenge ahead."
Labour Group leader Cllr Matt Storey called on the Independent mayor to lobby the government for fairer funding for the council.
Mr Preston responded by saying it was up to all politicians to highlight the issues the local authority is facing.
The council’s environment and community services department has been hit with an extra £2.1m worth of costs due to inflation, while children’s services is expected to have a £6.9m overspend.
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