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
More than 70 volunteers from six mountain rescue teams searched in subzero temperatures for 10 hours to find a missing Middlesbrough man.
The Irons have put us closer to the fire but we must re group and fight our way out of the mire. Robert Nichols.
Sunderland cemented their place at the bottom of the table after a 2-0 defeat to West Brom. Can they turn it around?