South Lakeland District Council said its deficit was a result of below inflation government grant settlements and increased staff and energy costs.

About �600,000 of savings has come from "housekeeping improvements", such as tighter spending controls.

At a full council meeting, it was decided to reduce some services, such as a play bus and tourism promotion.

Other areas which will be affected are grounds maintenance, business support, events and Kendal Museum.

The council's portfolio holder for policy, performance and resources, Councillor Andy Shine, said it was disappointed the government had not responded to requests for a meeting to discuss the grant settlement.

It said it had faced difficult decisions but was confident the plans would put the council back on an even footing.