Funding to ‘turbocharge’ Crown Works Studios announced

The landmark film and TV studio development now looks back on track as North East Mayor Kim McGuinness announces a £104m package to “turbocharge” the region’s creative industries.

The project, hoped to create thousands of jobs and bring blockbuster film production to the region, has been allocated £38.5 million as part of the push.

It is now hoped to be up and running by late 2027, with construction starting as early as this summer.

It comes just months after the project on the banks of the River Wear was thrown into doubt when private investors Cain International withdrew last June.

It forced Sunderland City Council to hire real estate firm CBRE to find new partners for the site last year – and saw Ms McGuiness ask Chancellor Rachel Reeves for more funding from the Government, which had already committed £25m.

But Mayor Kim McGuinness said the funding, which is set for approval at next week’s Cabinet, will prove that “if you have a creative dream,  you don’t need London to succeed”. 

Plans for the Crown Works studios development

The Northern Echo previously joined forced with papers across the region in 2024 to call on then Chancellor Jeremy Hunt to back the Crown Works – and he later hailed the plans as the biggest announcement for the area since Nissan came to Washington.

The vision for the vast £450m complex was originally led by FulwellCain, a joint venture between global entertainment company Fulwell 73 and Cain International, who had hoped to build 19 sound stages at the riverside site.

However, in 2025, the council revealed the proposals were being presented to the investment market, with the aim to find a final funder and developer.

Land preparation works next to the Northern Spire Bridge have already gotten underway following the plans being approved in 2024 – but no building work has begun.

The Northern Echo pushed then Chancellor Jeremy Hunt to back the Crown Works (Image: THE NORTHERN ECHO)

The first phase of construction will now begin in July, with the £38m figure including £11m recyclable funding, operational revenue support of £500k per year for five years and reconfirmation of £25m Trailblazer Devolution Deal funding first offered by the Government in 2024. 

Once open in late 2027, the studio will feature 125,000 sq ft of flexible space across a new ‘Studio One’ alongside the transformation of the existing Doxford Printworks building.

The Cabinet is also set to approve £24m to start work on a new 12,500-15,000 seat arena to rival Manchester and London at Gateshead Quays on the banks of the Tyne, where development has been stalled since the pandemic.

The on-site works will create a stand-alone platform for a new arena, a new performance square next to The Glasshouse International Centre for Music and a green linear park connecting the riverside to Baltic Quarter. 

And Mayor Kim McGuinness has also committed to spend millions more to back small venues across North East England, fund a diverse programme of festivals, events and sporting programmes, and provide financial support for local people to build their creative careers and businesses.

The investment marks the first major scheme since the Newcastle-Gateshead Mayoral Development Zone was created last year.

The £104m package also includes a £42m North East Culture, Creative Industries and Sport framework, backed by £25m from the combined authority’s integrated settlement, to develop grassroots talent, improve small venues, and boost access and participation across the region. 

The North East Culture, Creative Industries and Sport framework will be shaped by industry stakeholders to map the investment needed to sustainably grow the creative sector. 

Mayor Kim McGuinness said: “We’ve heard leading voices from Sam Fender to Jade talk about their pride in their north east roots and the huge barriers working class young people from the north face when trying to make it in music and film.

“I said in my manifesto I’d change that, and here’s the next big step – £104m backing both the inspirational big venues to the vital local space need for your first gig. 

“Last week we announced the skills funding to help you learn on the job, this week we’re backing more venues.

 “If you have a creative dream,  you don’t need London to succeed. We’ll prove that.”