Stalled Quayside arena plan could be targeted in mayor's Newcastle and Gateshead regeneration zone
A new mayoral development corporation could be set up in a bid to kickstart stalled developments in central Newcastle and Gateshead – including a new arena on the Quayside.
North East mayor Kim McGuinness is poised to launch a new body aimed at delivering rapid building works on critical Tyneside plots that have been left for years with “no real progress”.


The Local Democracy Reporting Service (LDRS) understands that target projects could include the site of the proposed international conference centre and arena on the Gateshead Quayside, Gateshead High Street and Newcastle’s Forth Yards area, as well as any potential regeneration works surrounding a new football stadium if Newcastle United were to leave St James’ Park.
Mayoral development corporations (MDCs) are statutory bodies which can be set up by metro mayors in England to drive regeneration. As well as providing funding, their powers can include making compulsory purchases of land, taking over planning decisions from local councils, and granting relief from business rates.
The exact scope and powers of an emerging Newcastle and Gateshead MDC remain unclear at this stage. But the LDRS understands that early proposals that could lead to its creation are set to go before the North East Combined Authority (NECA) cabinet later this month.
Ms McGuinness said: “People are waiting too long to see developments completed and we want to see that change, so we can deliver on our ambition and people can really feel growth and regeneration thriving here in the North East.
“We are looking to put the resources of this combined authority into transforming locations that people have passed by for years and seen no real progress. The creation of a new Newcastle and Gateshead Mayoral Development Zone will help to bring the area together and deliver transformation at pace.
“I know that everyone wants this to happen, and local leaders are ready to go. I can promise people there will be real change over the next few years.”


Ms McGuinness has previously announced her intention to create an MDC that would cover the North East’s rivers and ports. Such bodies have already been set up by Tees Valley mayor Ben Houchen and in Stockport by Greater Manchester mayor Andy Burnham.
While hailed as a means of speeding up development, critics have raised questions surrounding their transparency and accountability. Next week, leading councillors in Newcastle will be asked to sign off on a “more powerful” approach to regeneration in Tyneside’s urban core.
The city council’s cabinet is set to give approval to the development of a new strategic regeneration framework, potentially including an MDC, and a new pipeline of future building projects.
It comes after the major news last month of the Government signing off a £120 million investment package for the Quayside West plot, a huge patch of wasteland next to the Utilita Arena where up to 1,100 new homes could be built.
That area, which was formerly home to a lead works, is the largest parcel of land within the wider Forth Yards zone to the west of the city centre which city bosses have wanted to see regenerated for years.


Leader of Newcastle City Council, Karen Kilgour, said: “Newcastle is a growing city that is undergoing major transformation with its development sites such as Helix, Stephenson Quarter and Pilgrim Place. The Government’s recent announcement of £120 million for the Forth Yards site has really put Newcastle’s most significant development site firmly in the spotlight. It has the potential to transform the city’s economy over the next 15-20 years and attract even more investment to the city.
“Shaping and delivering that investment for the benefit of all our residents requires a new approach and, by working in partnership with Gateshead Council and the North East Combined Authority, we can achieve so much more together in going further and faster in job creation and building more homes that we know Newcastle and our residents need, and contributing to the national effort to build 1.5 million new homes by the end of the parliament.”
In Gateshead, building work on a “world class” Quayside conference centre and arena was meant to begin in autumn 2023 but has been severely delayed due to major cost rises. Gateshead Council is hoping that the impending demolition of the A167 flyover could help spark a wider regeneration of the surrounding town centre.
Its leader, Martin Gannon, said: “By working closely with the North East Combined Authority and Newcastle City Council, we can go further and faster in creating good jobs and building high-quality homes.
“This will not only strengthen Gateshead’s economy and communities, but also give residents, businesses and investors clear confidence that Gateshead is moving forward with ambition.”
