West Lindsey District Council faces reductions of £360,000 in the next financial year’s grant settlement.
In a statement to parliament, government secretary Eric Pickles announced “the greatest shake-up of local finance in a generation”. This is followed by a further reduction of more than £1m for 2014/15.
Council leader Burt Keimach said: “We need to work hard now and develop proposals. With financial savings and reductions over the three years, clearly all the low hanging fruit has gone and we now need to make difficult decisions for how we fill the gap of over £1million in our revenue budgets by 2014.
“We are well placed to respond to these challenges, however, considering the scale of the reductions and the funding gap this will create we cannot rule out future service reductions and will need to engage with our communities to help shape this.”
District councils appear to be the worst affected, with rural authorities being impacted worse than urban authorities.
Coun Lewis Strange is meeting with ministers, together with MP Edward Leigh, who will also be asking questions about the settlement rural areas have received.