The Chancellor has asked public sector workers to bear more pain for another year to help businesses and home-buyers get the economy going.
Thousands of civil service workers went on strike across the region as George Osborne announced a pay cap and more spending cuts in most departments.
However, he said the money would be used to create an 'aspiration nation'.
You can watch the full report from Dan Ashby below.
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Looking ahead at the forecast for the Tyne Tees region.
PepsiCo has said it is proposing the closure of its Walkers Snacks factory in County Durham putting 380 jobs at risk.
Robert Dunn said the 27-year sentence given to his brother was too lenient and said he would build the gallows himself to hang him