Decision on delayed arena expected next year

The project, known as The Sage, has been hit with severe delays and its expected costs have spiralled

A decision on the future of a heavily delayed riverside arena and conference centre will not be made until next year.

The North East Mayor's office has confirmed it is yet to conclude a study into whether the stalled development on the Gateshead Quayside can realistically go ahead and in what form.

Construction on the land between the Glasshouse and Baltic art gallery was meant to start in autumn 2023, but the project, known as The Sage, has been hit with severe delays and its expected costs have spiralled.

A spokesperson for the mayor's office said the combined authority was "committed" to supporting Gateshead Council as it determined the best way forward for the development.

"Our shared ambition is to create world-class cultural assets at Gateshead Quays, strengthening the region's reputation as a leading destination for culture and tourism as part of our growth plan," the spokesperson said.

Building was meant to start two years ago

Earlier this year, the North East Combined Authority (NECA) launched a review of the scheme to assess what market demand there was for the development.

It had been hoped there would be an update in the summer, but NECA officials have confirmed the assessment is expected to conclude early next year.

Labour Mayor Kim McGuinness said in August that she remained confident in the plans and that the Gateshead Quays was "pretty much the best place in the country" for a new arena to be built.

In January 2023, it was stated that the estimated cost of the arena and conference development had jumped from an original £260m to more than £350m.

However, that figure is understood to have since risen further, the Local Democracy Reporting Service understands.

Labour-run Gateshead Council has also faced criticism for building a recently opened multi-storey car park to serve The Sage, at a cost of £23m, when the future of the development is in doubt.

Leader Martin Gannon said the funding gap for the project, which has been backed with cash from the government's Levelling Up Fund, was "less than £100m".

One option thought to have been under consideration to cut the costs is downsizing the development.