Major £104m funding package unveiled for North East creative sector
Plans include backing for Sunderland’s Crown Works film studios, infrastructure works for the long-delayed Gateshead Quays arena and new support for grassroots culture
Two of the North East’s most ambitious cultural infrastructure projects are set to receive backing as part of a £104m investment package unveiled by North East Mayor Kim McGuinness.
The funding, which will go before the North East Combined Authority cabinet next week, includes major funding for the long-planned Crown Works film studios in Sunderland and the stalled Gateshead Quays arena development, alongside wider support for grassroots creative activity across the region.
At the centre of the package is more than £38m to help build the first phase of Crown Works Studios on the banks of the River Wear. Construction is expected to begin this summer, with the first phase scheduled to open by the end of 2027.
Originally pitched as a three-phase £450m complex featuring 19 sound stages and the potential to create up to 8,000 jobs across the North East’s creative industries and supply chains, the project suffered a major setback in June 2025 when financial backer Cain International withdrew.
The latest funding announcement - which includes the previously confirmed £25m Trailblazer Devolution Deal funding first offered by government in 2024 - is intended to help unlock further private investment and backing for the future development of the site.
Phase one will deliver around 125,000 sq ft of studio space through a combination of a new Studio One facility and the redevelopment of the former Doxford Printworks building.
Mayor McGuinness said: “I promised to back Crown Works Studios in Sunderland, and we’re rolling up our sleeves and getting it done - sending a strong message of the scale and opportunity for more investment in our creative industries.
“With this investment, we will bring blockbuster projects to the banks of the Wear, telling stories from our region and beyond, and showing local people that if you have a creative dream, you don’t have to move to London. The industry and the opportunities are here.”
Sunderland City Council leader, councillor Michael Mordey, said: “I am thrilled that the North East Mayor is backing us in our bid to unlock the potential of Crown Works Growth Zone and establish Sunderland as a TV and film production hub, an opportunity that will unlock significant benefits for the region’s people and businesses.
“From joiners, electricians and painter and decorators, who will create sets for TV and film, to data wranglers and digital creators, and forklift drivers to sound and lighting engineers, this studio development will bring with it opportunities for all kinds of people and professions. This is about unleashing the immense potential of our region.”
Alison Gwynn, chief executive of North East Screen, added: “Crown Works is a game-changing opportunity for our region, and I’m absolutely delighted to see this level of backing behind it.
“We’re already talking to streamers and major producers who are excited about the potential of this space when it opens, and this investment sends a powerful signal that the North East is ready to deliver.”
The proposed investment package also allocates £24m to prepare the Gateshead Quays site for a long-planned new arena development, which has faced repeated delays since it was first announced in 2018 as costs escalated.
The funding will enable infrastructure works to create a platform for a new 12,500- to 15,000-capacity arena on the Tyne’s south bank, alongside a new outdoor performance space and a landscaped park linking the riverside to the Baltic Quarter.
The project is seen as a key component of the Newcastle-Gateshead Mayoral Development Zone established last year, with leaders hoping a modern arena capable of hosting global touring acts will strengthen the region’s live entertainment economy.
The announcement comes weeks after Legends Global - operators of Newcastle’s Utilita Arena - revealed plans for a £65m refurbishment programme of the venue, raising more questions about the long-term future of the Gateshead Quays scheme.
But this latest funding announcement can only be interpreted as regional leaders remaining committed to delivering a new arena on Tyneside.
Leader of Gateshead Council Cllr Martin Gannon, said: “The huge cash boost for Gateshead Quays is not just about preparing a site – it’s about laying the foundations for a world-class arena that will put Gateshead on the map and spark new energy, confidence and opportunity across our region.
“Residents have waited a long time to see momentum, and this funding means that works will turn ambition into visible, tangible progress.
“Gateshead deserves cultural spaces that inspire, places that bring people together and investment that creates jobs and opportunities for our people. This project is a major part of delivering that future, and it reflects the ambition, pride and potential of Gateshead.”
Alongside the major capital projects, the wider £104m package also includes a £42m framework designed to support creative businesses, festivals, sporting events and small venues across the region.
The North East Culture, Creative Industries and Sport framework will be shaped in partnership with industry stakeholders and is intended to support career development, improve grassroots venues and expand opportunities for participation in cultural activity.
Mayor McGuinness said the investment was designed to create opportunities for creative talent to build careers in the region without needing to relocate.
“We’ve heard leading voices from Sam Fender to Jade talk about their pride in their north east roots and the huge barriers working class young people from the north face when trying to make it in music and film,” she said.
“I said in my manifesto I’d change that, and here’s the next big step - £104m backing both the inspirational big venues to the vital local space need for your first gig. Last week we announced the skills funding to help you learn on the job, this week we’re backing more venues.”
According to data from the Department for Culture, Media and Sport and the North East Evidence Hub, the region has experienced the fastest proportional growth in creative industries’ gross value added of any English region in recent years.
If approved by cabinet next week, the investment would represent the most significant public funding package yet announced by the Mayor for the sector.