A projected overspend of more than £6 million in the first part this financial year has been confirmed by Newcastle City Council.
The authority has blamed its financial issues on a "better-than-expected" pay award for council staff as well as the higher level of inflation on "third party spend".
Documents presented to the city council's finance and budget monitoring scrutiny committee on Tuesday said the council had a projected overspend of £6.2 million for the first quarter of 2022/23, against the agreed budget of £24.17 million.