The Royal Cornwall Hospitals Trust faces a projected �31m overspend

Nigel Walker, who is responsible for adult and social care, said unless there was a clear plan, the Healthcare Commission would be called in.

Health authorities are considering cutting services and jobs to tackle multi-million projected overspends.

Health bosses said they were working on reforms to sort out service delivery.

'Adverse impact'

Problems being faced by health authorities around the county include the Royal Cornwall Hospitals Trust considering closing a hospital, wards and other departments to tackle a projected �31m overspend.

Mr Walker said that the authority was not only challenging health trusts to explain how they will tackle problems.

He said the council was also contacting the head of the South West Strategic Health Authority, Sir Ian Carruthers, to demand an action plan.

He said: "If they can't convince us in two weeks time that they do have a programme in place and explain how services will be improved, we will refer this to the Healthcare Commission.

"We have the right to call them in when there is information that suggests serious failures in the provision of healthcare, resulting in the adverse impact on the safety of patients or clinical effectiveness."

The South West Strategic Health Authority, which was formed in July, said it was leading huge reforms with the NHS delivering new and more modern services, ensuring that patients are treated more quickly.