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A council has warned of "severe cuts" if it does not receive more funding.

Growing financial pressure on Durham County Council means it needs to find about £22m in funding or cuts next year to balance its budget.

Leader Amanda Hopgood said there was "little cause for optimism" for an increase in funding.

The government said it would "get councils back on their feet" by a range of measures, including the ending of competitive bids for funding.

Durham County Council faces a £64.1m shortfall over the next four years – a higher amount than previously forecast due to growing budget pressures, primarily in children’s social care and home-to-school transport.

An updated report will be presented to cabinet members in December setting out the latest proposed changes for 2025/26, the Local Democracy Reporting Service said.

Council chiefs say they have lobbied local MPs and the government, but Liberal Democrat Hopgood told a cabinet meeting on Wednesday: "There is little cause for optimism at this stage that we will see the increases in funding that we desperately need based on all the noises that are coming out of the new government so far."

Richard Bell, the Conservative deputy council leader, also warned "difficult choices are always going to be required" if the current funding system remained.

A spokesperson for the Ministry of Housing, Communities and Local Government said: "The government will fix the foundations of local government and work closely with the sector to do so.

"We will get councils back on their feet by doing the basics right, providing more stability through multi-year funding settlements, ending competitive bidding for pots of money and reforming the local audit system."

Future decisions on local authority funding decisions will be part of the next spending review and local government finance settlement.

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