Northumberland County Council says its goal is to safeguard jobs.
“We are simply having informal discussions with a range of potential partners on how we can deliver services more efficiently...but we need to be clear that this is only one of many options we are considering."
Northumberland County Council has sent out hundreds of letters to its staff and councillors to begin discussions on whether to allow more private companies to run its services.
The council has to save another £70m over the next three to four years.
Business owners in Cannon Park are angry at council plans to redevelop the area and turn it into a shopping complex. They could be forced to move their premises to another part of town. A council meeting will take place today and proposals are expected to be put out to public consultation.
Newcastle City Council's announced spending cuts of 30 million pounds - which will mean 360 job losses. The local authority set out its latest budget at a full council meeting last night. The council claims it will protect front line services where possible.
Public sector unions say they'll fight compulsory redundancies. All councils are implementing the Government's 2010 spending review which will see local authority spending reduced by more than a quarter by 2015.