Havering Council will re-assess its future spending, after the government announced that the council will lose 1.6 per cent from its budget next year.
The change could put further strain on the council, which began a four year programme of cuts in 2010, with the aim of saving �40m.
Cllr Roger Ramsey, Cabinet Member for Value, said: “We are currently unpicking this so that we can understand fully what this means for Havering.
“We do have a robust financial strategy in place and are committed to protecting the services that we know our residents value the most.”
The council is due to begin a consultation process on its budget in January, when more information becomes available.
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