Gateshead arena development delayed until 2025

The new development will be based on Gateshead's Quayside

A "world-class" arena and conference centre on Gateshead's Quayside will not be completed until 2025, council bosses say.

The Sage complex, which is expected to cost more than £350m, was originally planned to open this year, before being pushed back to 2024.

Last week the development won £20m from the second round of the government's Levelling Up Fund (LUF).

Gateshead Council says it is working to "mitigate further impact on timelines."

The development will replace Newcastle's Utilita Arena and will sit between the existing Sage Gateshead concert hall, which is to be renamed, and the Baltic Centre for Contemporary Art.

There had been concerns the development could be scuppered by the rising price of steel and other construction costs, the Local Democracy Reporting Service said.

It will feature a 12,500-capacity arena, an international-grade conference centre with 17 suites, art exhibition space, bars and restaurants, and new walkways and public space around the Quayside.

'Not responsible for delays'

Plans have been redrawn to cut costs, with two proposed hotels removed from the main site and relocated to the corner of Hawks Road and Quarryfield Road nearby.

Gateshead Council leader Martin Gannon said the council was not responsible for the delays, which were instead "due to a combination of external factors".

The Labour councillor cited rising construction and energy costs and a delay in the announcement of the Levelling Up Fund.

He said: "It's great that government has recognised the benefits of The Sage development, especially during the current economic climate.

"As a council we are dedicated to ensuring The Sage is delivered so that we can deliver employment opportunities to our residents of Gateshead and beyond.

The economic benefits of The Sage will radiate out as local businesses and hospitality benefit from the increase of trade".