New film studios, a new arena, support for small venues and a festivals programme drive North East Mayor’s record £104m investment in the region’s creative talents

North East Mayor Kim McGuinness has unveiled a £104m package to turbocharge the region’s creative industries driving new jobs and opportunities for local people.

At the heart of the Mayor’s vision is £38.5m to build and open what is set to be one of the North of England’s largest film studios by the end of next year. Construction of Crown Works Phase 1 in Sunderland will start this summer.

A further £24m will be invested to ready Gateshead Quays for a new 12,500-15,000 seat arena to rival venues such as Manchester, Glasgow and London, as well as the creation of a new open-air performance space and urban park.

Millions more will be spent to back small venues across North East England, fund a diverse programme of festivals, events and sporting programmes, and provide financial support for local people to build their creative careers and businesses.

Reaction to some of the measures announced

Reacting to the measures announced, Professor Jane Robinson, Pro-Vice-Chancellor Business, Partnerships and Place, said: “This is fantastic news for the North East’s creative industries, a sector that we know punches above its weight and has huge potential to grow. These ambitious plans will help our graduates and other creative practitioners build careers here in the North East, contributing not just to the economy but the vibrancy, identity and attractiveness of the region.”

Professor Jo Fox, Pro-Vice-Chancellor of the Faculty of Humanities and Social Sciences, said: “Newcastle University is the proud home of writers, filmmakers, artists and musicians. We know the creative industries can inspire, advance knowledge, generate debate and enrich lives in way no other industry can so it is very gratifying to see the value of them recognised by the North East Combined Authority with this proposed investment.”

Hasan Bakhshi, Director of the Creative Industries Policy and Evidence Centre and Professor of Economics of Creative Industries at Newcastle University Business School, said: "This investment from the North East Mayor is hugely welcome. The Creative Industries Policy and Evidence Centre, led by Newcastle University, has over a number of years documented the transformative power the Creative Industries can have on local economies.  As well as directly contributing to Gross Value Added and jobs, broad-based investment like this in the North East's production facilities, venues and festivals is critical in developing vibrant ecosystems within which Creative Industries thrive." 

Dr Adam Behr, Head of Music  said: "Strategic investment of this scale can help drive the growth of the North East’s creative economy and reinforce the region’s growing reputation as a centre for music, and culture more broadly.

"It’s vital to recognise that culture works as an ecosystem – headline infrastructure at stadium and arena level works best when connected to thriving grassroots venues, festivals and talent pipelines. Support for smaller venues and creative careers sits alongside the larger developments so the recognition of the grassroots in this package is a welcome sign, particularly given the struggles that smaller venues encounter around operating profitably in the current climate, despite providing a significant cultural resource. Maximising the impact of the package will involve carefully targeting resource and responsive delivery, but recognising the sector’s foundational role is an encouraging and important step.

"Evidence from research and mapping of the North East music sector shows both the depth of local talent and the opportunity that can be unlocked by addressing infrastructure and ecosystem gaps. Effective deployment of investments like this across the ecosystem has the potential to strengthen the region’s cultural offer, and also to add real momentum to the Newcastle-Gateshead Music City initiative while unlocking the significant growth potential of the region’s music sector and wider creative economy."

The package of investments is set to be considered by the North East Combined Authority Cabinet next week. The meeting will hear that the creative industries is among the fastest growing sectors in the UK, with the North East outperforming all other English regions in recent years.  

Construction of Phase 1 of Crown Works is set to begin in July with the Mayor providing a total package of more than £38m, including £11m recyclable funding, operational revenue support of £500k per year for five years and reconfirmation of £25m Trailblazer Devolution Deal funding first offered by the Government in 2024. 

Crown Works Studio would be one of the largest in the North when it opens at the end of 2027, totalling 125,000 sq ft of flexible studio space across a new Studio One space alongside the transformation of the existing Doxford Printworks building.

The investment is expected to act as a catalyst for private sector backing and future development of the site beside the River Wear to feed the North East’s fast growing film and TV production market.

North East Mayor, Kim McGuinness said: “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.

"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.

"If you have a creative dream,  you don't need London to succeed. We'll prove that." 

The Cabinet is also set to approve £24m to start infrastructure building works for a new arena at Gateshead Quays on the banks of the Tyne, a site where development has been stalled since the pandemic.

The on-site works will create a stand-alone platform for a new arena, a new performance square next to The Glasshouse International Centre for Music and a green linear park connecting the riverside to Baltic Quarter. 

The investment marks the first major scheme since the Newcastle-Gateshead Mayoral Development Zone was created last year, and paves the way for a modern arena of between 12,500 and 15,000 seats capable of attracting global music acts.

The whole £104m package also includes a £42m North East Culture, Creative Industries and Sport framework, backed by £25m from the Combined Authority’s Integrated Settlement, to develop grassroots talent, improve small venues, and boost access and participation across the region. 

The North East Culture, Creative Industries and Sport framework will be shaped by industry stakeholders to map the investment needed to sustainably grow the creative sector. 

Press release adapted with thanks to the North East Combined Authority