Barnsley Council is facing a £19m funding gap and must make “difficult choices”, its leader has said.
Sir Stephen Houghton said the authority faced financial challenges but had a “flexible plan” to help it balance its budget.
He said the government’s recent Budget would help to address pressures in areas including children’s social care and special education needs and disabilities (SEND) services.
Chancellor Rachel Reeves announced £1.3bn extra funding next year for local councils alongside tax rises worth £40bn to fund the NHS and other public services in September.
Houghton said the government announcements were a “step in the right direction” but added there was a “long way to go”.
“Both national and local governments need to make difficult decisions to help reverse years of financial decline and ensure resources are finally going to the right places,” he said.
But Barnsley’s finances were in an “extremely difficult position,” he added.