The director of finance at beleaguered Northamptonshire County Council, Mark McLaughlin, has issued a second Section 114 notice and warned councillors of a potential £60-70m shortfall in this current financial year.
An extraordinary full council meeting will now be held next month (1 August) to discuss a set of spending priorities in light of the spending controls.
A further meeting of the full council will meet later in the month specifically to discuss the Section 114 notice.
The decision to issue a Section 114 notice was made in discussion with the Government-appointed commissioners.
Cllr Matthew Golby, Leader of Northamptonshire, said: “The financial challenge facing Northamptonshire County Council remains critical and the spending controls we have in place are vital to ensure we are focusing our limited funding on only the most essential services.
“At the meeting next month, we as a council will discuss a set of priorities built around delivering statutory services and services for the most vulnerable in our communities, and this means there will be difficult decisions that have to be made.
“We remain committed to doing everything we can to identify the savings required to reach a more stable financial position whilst ensuring those in our communities at risk of harm are protected.”