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
Vera Robinson MBE has died at the age of 101. She had been a fundraiser for the Redcar RNLI lifeboat station since she was 16 years old.
Provisional statistics for July show it was a cool and wet month for many of us.
With just 49 days until the start of the Rugby World Cup, the Webb Ellis Cup is touring our region.