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.
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It happened around 10.25am on Sunday morning 18 February.
This double signing announcement comes after the news that French centre Maxime Mermoz will join the Falcons next season
The England all-rounder will earn £1.7million playing in the Indian Premier League after being signed by the Rising Pune Supergiants