The council has vowed that the vulnerable will not be affected

The �2.3m overspend came after extra money was given to the department at Middlesbrough Council.

The authority's Labour members met in the town hall on Monday night to discuss the news, after receiving a report from council Chief Executive Brian Dinsdale.

The report calls for a range of urgent measures, including a freeze on all social services recruitment and a higher cost for some council services.

Bob Pitt, the former chair of Cleveland County's social services says the Middlesbrough department needs to prioritise its service to avoid further problems.

The overspend cannot go on but the vulnerable and needy will be protected Brenda Thompson

He said: "What they need to do is assess the need. They need to look at the people for use the services, they need top assess those services and then look at the financial terms.

"[They risk] driving people out of the services, the vulnerable will become more vulnerable and people will become more at risk."

But Brenda Thompson, Middlesbrough Council's executive member for health and social care, said they were already trying to solve the problems.

She said: "The chief executive has immediately made better financial information available.

"You cannot manage a budget unless you have got up-to-date, timely information and that is already in place.

"The overspend cannot go on but the vulnerable and needy will be protected and will get sharp-focussed services from Middlesbrough Council."