Newcastle City Council is starting up a £600,000 arts fund for its theatres and arts organisations to apply to.
It comes after the council proposed to cut more than one million pounds of its arts funding in its last budget.
The Deputy Prime Minister Nick Clegg accused the council of playing politics with its decisions, but today the council said the decision made financial sense.
Councillor Nick Forbes said the money was coming from alternative revenue streams which were safe from cuts.
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Many areas dry over the next few days with variable cloud and cooler airflow
A dry day with bright or sunny spells. Rain comes through overnight into Sunday morning, before drier yet fresher weather develops
A look ahead at the forecast for the Tyne Tees region.