Arena and business parks get £23m devolution cash

Redesigned plans for the new Sage arena and conference centre on the Gateshead Quayside

Two projects in the north-east of England have been given £23m secured through the region's devolution deal.

A new arena on the Gateshead Quayside and two Durham business parks are the agreement's first beneficiaries.

Devolution for the region still has to be formally ratified by Parliament.

However, Durham Council leader Amanda Hopgood said the investment was "key to economic success".

She added: "These early investments demonstrate confidence in County Durham and the wider region, and we look forward to working together with regional partners to maximise the devolved powers and funding that are available to us."

The devolution agreement will see a North East mayor elected in May to cover Northumberland, Tyne and Wear, and Durham.

Economic impact

The multi-billion pound deal still has to pass through Parliament, but ministers committed to giving the region funding in advance of the election to help kickstart some key developments, the Local Democracy Reporting Service said.

This includes £3.5m for the new Sage international conference centre and 12,500-capacity arena planned for the Gateshead Quayside.

Long-delayed construction is now expected to start in the spring with the cost now projected to be £350m, according to papers sent to the North of Tyne Combined Authority (NTCA) on Tuesday.

Gateshead Council leader Martin Gannon said the funding would "accelerate the delivery" of the conference centre which would in turn have a beneficial economic impact across the region.

The NTCA, which is in charge of allocating this funding before the new North East Mayoral Combined Authority is established, also signed off on £9.2m for the Aykley Heads business park development in Durham.

A further £10.7m will go towards the expansion of the NETPark science and technology centre in Sedgefield.