Reform casts doubt on future of Gateshead Quayside Arena
The recently elected leader and deputy leader of the council have likened the scheme to putting Disney in the desert, while North East Combined Authority Mayor Kim McGuinness has hit back at a perceived lack of ambition.
Plans for the arena site have been plagued by delays and budget problems since the project received the go-ahead in 2023. Originally, construction on the site between the Glasshouse and the Baltic art gallery was originally scheduled to begin in autumn 2023, having been unanimously approved in July that year.
Lendlease was appointed to build the 60,000 sq ft Sage International Conference Centre, phase one of the project, in August 2023.
Delivery of the 12,500 capacity arena was then to follow, however, rising costs for the project provoked significant delays and with no spades in the ground, the North East Combined Authority intervened last year and initiated a study into the feasibility and ongoing options for the prime riverside site.
In March this year, NECA committed £24m towards getting work started on the proposed 12,500-15,000 capacity scheme, scrapping plans for the conference centre for the time being.
The money was to be used for infrastructure and enabling works on the waterfront site, creating a stand-alone platform for a new arena, delivery of Gateshead Quays public realm, including a new performance square next to The Glasshouse International Centre for Music, and a green linear park connecting the riverside to Baltic Quarter.
The funding was also set to support the next stage of project development, including the process to identify a commercial operator for the arena, following extensive market engagement which confirmed that at least four major arena operators have expressed interest in the site.
Gateshead Council was working in partnership with NECA on the project, with the aim of strengthening the North East’s visitor economy and is part of a £104m region-wide package to fund the growth of the creative industries, including Sunderland’s Crown Works film studio.
Now, council leader Nick Allan and deputy leader Fiona Pearce, both Reform UK party members, have cast uncertainty over the future of the project, describing it in a statement as a ‘vanity project’ and alluding to an AI analysis concluding that it would be financially unviable.
Cllr Pearce said: “If it is an investment that is going to have a return and if it is going to benefit the people of Gateshead, then it is 100% worth doing. If someone cannot provide it with a return on investment, and you usually look at five years for a good return on investment, and it doesn’t look like the people of Gateshead are interested in it anyway then there is a decision to be made…
“If we feel something is not going to be a benefit and will be more of a drain, we will make that call for the people of Gateshead. There is no vanity here. It is just about what is best for us. Sometimes, on a very superficial level, I look at some of these projects and think ‘the people of Gateshead are not going to use that’.”
Cllr Allan said: “As things currently stand, it is a vanity project. It is like taking Disneyland and putting it in the middle of the desert. You have to get people there and it has got to have a meaningful purpose.”
The Mayor has responded in a statement: “This is ultimately about ambition. Right now, Reform are talking about scrapping major investment in Gateshead because AI told them to. That’s absurd.
“What we need are more local jobs and major national acts coming to what is currently a derelict site. We need to open up Gateshead town centre and finally give it the attention it deserves. People have been asking for years when something is going to happen here and now that’s happening, Reform wants to go right back to the drawing board.
“They’re basically saying Gateshead isn’t worth the money and that’s shocking. The idea that a project like this has to pay for itself in five years misses the point. An arena is a 30-year investment, not a five-year payday loan.
“Our plan will bring hundreds of thousands of people to Gateshead every year while inspiring the next Sam Fender or Jade. To do that we need a modern arena and to get on with building it.”
Gateshead Council was contacted to ask whether the Old Town Hall project, led by Capital&Centric, would also come under scrutiny. However, plans to transform the local authority’s former headquarters into a neighbourhood featuring 243 homes, cafés, bars, restaurants and green spaces are still set to proceed, with no changes currently planned and a public consultation ongoing.
