The Government has announced the department that funds councils is to get one of the biggest cuts in funding, which is likely to affect services right across the region.
Chancellor George Osborne confirmed the Communities and Local Government budget is being reduced by another 10 per cent.
It means councils like Sunderland must save another one £100 million.
The council proposes closing libraries and ending some free school bus services, which has been met with an angry reaction.
As the Chancellor announced that councils will be hit the hardest, we went to Wearside to see how people are coping with the cuts.
Find out if you are among the people whose personal finances will be directly affected by George Osborne's Spending Review.
The cuts would have been less painful had the coalition not ring-fenced some large departments. So where does that leave everybody else?