Mayor gives date when building work will start for long-promised state-of-the-art new North East arena

Kim McGuinness announced £24 million of new funding on Monday evening to help revive the vision for a modern concert venue in the heart of Tyneside, after years of setbacks and delays.

Plans for a state-of-the-art arena and an international grade conference centre on the Quayside have been in the works for the best part of a decade, with a prime plot of land between the Glasshouse music hall and Baltic art gallery earmarked for the development.

But the project has been plagued with problems and stalled as its estimated costs spiralled.

The mayor’s cash injection, due to be signed off by the North East Combined Authority (NECA) next week, will be used to deliver critical infrastructure works to “derisk” the scheme and make it a more attractive proposition for a new investor-operator to run a 12,500-15,000 seat venue capable of attracting the world’s biggest acts.

It will also be targeted at creating an open-air performance square next to the Glasshouse and an urban park connecting the riverside to the Baltic Quarter.

The conference centre element looks set to be dropped from the plans.

Speaking to the Local Democracy Reporting Service on Tuesday morning, Ms McGuinness said: “It has been a very long wait for people and I am as inpatient as anyone else. We are now putting the investment in place so that we can get under way, first of all with doing something with that site.

“That is one of the most important sites in the whole region, it is a beautiful spot right there between the Glasshouse and the Baltic. The fact it is not being used at the moment is awful for us.

“So some of this investment will be about bringing it back into use immediately. But we will see work start on an arena at the beginning of 2028 and completed as soon as possible. What is not okay is that the big acts who are on tour step over our region because we don’t have the space big enough.”

Covid-19, the war in Ukraine, and major price inflation hitting the construction industry have all been blamed for the lack of progress on the Quays up to this point.

Previously, the idea had been to replace the Utilita Arena in Newcastle with a modern venue on the other side of the Tyne. The existing site’s owner-operator was on board to operate the Gateshead site.

However, the situation is now less clear. NECA says there are now “at least four major operators” interested in running the proposed new arena.

Utilita Arena owner Legends Global recently announced plans to invest £65 million to upgrade the 1990s facility and would be faced with a big decision over its future if the Gateshead venue does finally come to fruition, whether it becomes the operator or not.

Ms McGuinness claimed that there “is space for both” arenas. However, she added: “The arena in Newcastle currently is of a time and what we need to be doing is constantly evolving. We have to keep up. This is not a region that is going to sit and take a back seat, this is a region that is ambitious and wants to forge on.

“We see some of the bigger acts just don’t come here because the arena isn’t big enough, isn’t modern enough.”

Stephen Patterson, CEO of Newcastle business improvement district company NE1 Ltd, said that the announcement over the new arena “needs to turn into implementation and quickly”.

He also urged decision-makers not to abandon the idea of a “game-changer” conference centre.

Mr Patterson said: “The Quayside is the perfect, iconic location for both an arena and a conference centre. With the initial funding secured, pressing ahead with plans for the international conference centre should remain a priority, as its delivery will be the final piece in the Quayside regeneration jigsaw. We hope that this initial funding announcement creates the right conditions for future investment.”

Gateshead Labour MP Mark Fergsuon said the mayor’s investment was a “big vote of confidence in Gateshead Quays”.

He added: “This will accelerate the regeneration of the site to put us once again on the world stage for the arts.

“I will continue to do my bit, working with Kim and the council to promote Gateshead as a major centre for development, investment and growth that will enhance the quality of life for local residents.”

The arena funding announcement is part of a wider £104 million package for the region’s cultural sector, including a £38.5 million boost to get construction started on the Crown Works film studios in Sunderland.

John McCabe, chief executive of the North East Chamber of Commerce, welcomed the “renewed momentum” on two flagship projects that have run into difficulty.

He added: “At the same time, it is clear that the schemes now progressing are not quite as large as some of the earliest ambitions that were originally discussed. The priority now must be ensuring they create meaningful economic opportunities for businesses and communities across the region.

“The North East has the talent and ambition to build a globally recognised creative economy, outside of London and Manchester. Investments like this can help unlock that potential, and we look forward to working with our members across the region to ensure these developments become a reality.”