A £104m public funding package aimed at kick-starting a new arena, film studios and cultural infrastructure across the North East could unlock major construction work beginning this summer.
The ambitious Crown Works Studios project in Sunderland is among the developments expected to move forward as part of the investment programme. North East Mayor Kim McGuinness said the funding would help unlock plans for the large-scale film studio complex while also supporting enabling works for a long-planned arena at Gateshead Quays.
The largest single scheme within the programme is the £39m Crown Works Studios development. Preparatory construction work for phase one is expected to begin in July.
The first phase will deliver around 125,000 sq ft of studio space, combining a new Studio One building with the conversion of the former Doxford Printworks site beside the River Wear. Once complete in 2027, the development is expected to rank among the largest film studio facilities in northern England.
Funding for the scheme includes £11m of recyclable investment funding, £500,000 a year in operational support over five years, and £25m from previously allocated Trailblazer Devolution Deal funding.
Alongside the Sunderland development, the Mayor has earmarked £24m to help unlock a new arena scheme at Gateshead Quays.
The funding would support infrastructure works needed to prepare the riverside site for a proposed 12,500 to 15,000-seat arena. Plans also include a new public performance square next to The Glasshouse International Centre for Music and the creation of a green linear park linking the Tyne riverside with the Baltic Quarter.
The investment is expected to help restart development at the Gateshead Quays site, where arena plans stalled during the pandemic amid rising construction costs. In January 2023 it was revealed that the estimated cost of the project had increased from £260m to more than £350m.
The arena is also set to become the first major scheme linked to the Newcastle–Gateshead Mayoral Development Zone, which was established last year to accelerate regeneration along the Tyne corridor.
Beyond the major construction projects, the wider £104m package also includes a £42m North East Culture, Creative Industries and Sport framework. This funding is intended to support grassroots venues, festivals and wider growth across the region’s creative sector.
Mayor Kim McGuinness said: “If you have a creative dream, you don’t need London to succeed. We’ll prove that.”
The proposals are due to go before the North East Combined Authority cabinet next week for approval.
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