The region's councils will see their spending power cut by nearly two per cent next year, in a settlement the Local Government Secretary has described as a "bargain" for authorities.
It means yet more savings will have to be made on top of the millions already being slashed from budgets.
On Teesside, one council is now looking to increase council tax to try to balance the books.
You can see the full report from Claire Montgomery below.
More top news
McManus, who hid in a wardrobe after trying to steal items from his friend, pleaded guilty to aggravated burglary at Newcastle Crown Court.
An endangered baby giraffe has been born in Malton, North Yorkshire. Here are some of the name suggestions from ITV News Tyne Tees viewers:
A benefit cheat from Houghton-le-Spring who claimed over £80,000 which he was not entitled to has been spared jail.