Newcastle City Council’s cabinet has approved budget proposals that will see spending cut by £15m over the next year.
The proposals involve a council tax rise of 4.99% and reductions to the council's crisis support service.
There will also be a £537,000 reduction to the council's subsidy for school meals.
Cllr Paul Frew, the authority’s cabinet member for finance, told the BBC’s Local Democracy Reporting Service: ‘We are not in section 114 consideration. But we need to make decisions now so that we don’t get into that situation in the future.’
