Newcastle's Alive After Five fails to meet economy boost target

£591m has been generated by shops and restaurants staying open until 20:00 GMT in Newcastle City Centre

Backers of an initiative to increase business in Newcastle city centre say the scheme is on track despite it generating less money than expected.

Alive After Five, which has seen shops and restaurants staying open until 20:00 GMT and free car parking, was expected to boost the economy by £246m a year.

But it has averaged just under £120m a year since its 2010 launch.

Newcastle City Council and NE1 Ltd say the scheme is still working.

The initiative has brought in £591m in five years according to NE1 Ltd, a business development group.

An additional 43 bars and restaurants have opened across the city centre since the introduction of Alive After Five and a further 26 are set to open by the end of 2016.

Since its introduction Newcastle has seen a footfall rise (the number of people entering a shopping area) of 4.5% while the rest of the UK has declined by an average of 1.6%, NE1 Ltd said.

More than nine million people have also visited the city after 17:00 GMT since Alive After Five began.

A spokesman for NE1 Ltd said: "Considering the economic difficulties faced elsewhere there is no scope to be disappointed.

"We are delighted, as are the businesses."

Newcastle City Council's Cabinet secretary Stephen Powers, said: "We believed it was important to support this initiative, and the fact that more than £500m has been spent after 17:00 since it was launched shows it was the right decision."