North Tyneside Council is facing a budget deficit of more than £23m next year.
The local authority had already expected a £7m black hole this year but higher wages, inflation, energy costs, and social care fees, have created a further £15.6m gap. This comes from the council's initial budget proposals.
New council employee wages, which have been negotiated between the local authority and trade unions, will cost the council £4m. Council employees are set to receive a 5-6% pay rise, equating to approximately £1,925 per full-time worker.