Newcastle City Council has announced it will have to save more than £13m next year and raise council tax in order to set a balanced budget, leading to the loss of 40 full-time jobs.
It has given the public until January to comment on the proposals, set out in a report, 'Newcastle 2020: Investing in a fairer future - One year on'.
The draft budget proposes a 1.95% rise in council tax and three per cent rise in the social care precept.
The council says it will work closely with the unions to try and avoid compulsory redundancies.
Leader of Newcastle City Council, Cllr Nick Forbes, said new models of delivery would be explored including shared services, a charitable trust for parks and investing in new affordable housing.
He said: 'For the last seven years we have suffered some of the highest cuts in the country, and sadly next year will be no different.
'We are an ambitious council. Our transformation of services and good financial stewardship have helped minimise the impact, but Government cuts are such that the decisions we have to make will still be very painful.'
