Scottish Borders Council expects to see a funding reduction of about £3.8m
A council in southern Scotland has warned it will have to make "serious decisions" to cope with a cut in its funds from the Scottish Government.
Finance Secretary John Swinney announced his draft plans on Thursday.
Neil Calvert, of Scottish Borders Council, said it would mean a reduction of about £4m in the funds allocated to the local authority.
He added that moves to "ring-fence" funds for particular areas could also have a "knock-on" effect.
Mr Swinney confirmed that councils would be asked to take their pro-rata share of what he termed "the Chancellor's cuts".
He said councils had already indicated they were prepared to manage within these reduced spending totals.
However, Mr Calvert said there was no doubt it would create problems in the Borders.
"That will cause us difficulties," he said.
"Our share of the reduced budget is estimated to be £3.8m, so that is a significant reduction."
He said that even if the reduction was spread across revenue and capital spending it would still leave the authority facing "serious decisions".
He added that it was a "distinct possibility" that jobs and services could be lost.