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.
More top news
Kerrie brings you Saturday's pollen for the North East region
Kerrie brings you Saturday's forecast for the North East
MPs and Lords have been left unable to access their emails remotely as a result of measures taken to stave off the attack.