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
A look ahead at the forecast for the Tyne Tees region.
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Three of the region's court houses are to close after the government decided they were under-used.