Right embarrassed about gutted services (7)
I believe the answer is:
redress
'right' is the definition.
(synonyms)
'embarrassed about gutted services' is the wordplay.
'embarrassed' becomes 'red' (someone may blush or go red when embarrassed).
'about' becomes 're' (regarding).
'gutted' means to remove the middle letters (to gut something is to remove its insides).
'services' with its centre removed is 'ss'.
'red'+'re'+'ss'='REDRESS'
(Other definitions for redress that I've seen before include "Get back into gear" , "remedy" , "Set right - compensation" , "set straight again" , "Pay" .)