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
Chancellor George Osborne will seek to reassure financial markets on Monday morning following Britain's decision to leave the EU.
Eight crew members had to be rescued from a fishing boat after it started sinking a mile off the coast of Sunderland.
Drivers travelling north or southbound on the A1 near Newcastle and Gateshead are advised to expect delays until Wednesday morning.