Gateshead Quayside arena: Council urged to break silence on stalled plans for 'world class' venue

Council bosses have been urged to come clean on the future of stalled plans to build a new arena and conference centre on the Gateshead Quayside.

Major question marks continue to surround the heavily-delayed construction of what has been hailed as a “world class” development on the south bank of the Tyne. Proposals for the huge complex, to be known as The Sage, have been in the works for years but have suffered multiple setbacks.

Gateshead Council warned almost two years ago that the estimated cost of the scheme had jumped from an original £260 million to more than £350 million as inflation spiked, and the Local Democracy Reporting Service understands that the predicted costs have continued to spiral since. The prime patch of land earmarked for the arena and conference centre, on a former car park located between the Baltic art gallery and the recently-rebranded Glasshouse International Centre for Music, was cleared some time ago in preparation for the building work – but there has been no sign of progress for many months.

A £23 million multi-storey car park in the Baltic Quarter has also been built to serve the development, but it is currently closed and gated off. Gateshead Council said in June this year that it hoped to give an update on the Sage project “later this summer” – however, the authority has been silent on the matter since.

Ron Beadle, leader of Gateshead’s Liberal Democrat opposition, told the Local Democracy Reporting Service (LDRS) that it was time for answers on what the future holds for a scheme that it is claimed will create 2,000 jobs, give a £70 million annual boost to the local economy, and attract a million visitors per year. The council insisted on Wednesday that the scheme “continues to make progress” and that it was still finalising details of its costs and funding.

Coun Beadle said: “Residents are rightly dismayed by the lack of progress with Gateshead Council’s plans. They have seen £23 million spent on a car park which has subsequently closed on the site that is supposed to serve a development which may or may not be going ahead. It is time for the council to clarify exactly what’s going on.”

The future of the Sage will have a major knock-on impact for the Utilita Arena on the Newcastle side of the river, which was meant to be replaced by the 12,500-capacity concert venue in Gateshead. The uncertainty over the scheme is also proving a headache for neighbours at the Baltic Quay flats, who previously fought to have a contentious hotel removed from the designs for the Sage.

After redesigned proposals for the centre from developers Ask:PATRIZIA were granted planning permission in July 2023, the council said that construction was due to begin in the autumn – but there is no sign of that happening more than a year later. One Baltic Quay property owner, who asked not to be named, told the LDRS that most residents believed the development will be “positive for Gateshead and the Quayside” but had been left increasingly frustrated.

They added: “That said, we are now faced with a construction site that has seen little to no progress. This not only affects the residents’ enjoyment of the spectacular views but also means the wider community has lost access to the car park. The uncertainty around the ongoing works is making it difficult for Baltic Quays residents to sell their homes or, in some cases, even rent them out. After all, who wants to move into a flat with long-term construction looming over them?”

The arena and conference centre development has previously been awarded a £20 million grant from the Government’s Levelling Up Fund, as well as £3.5 million of funding through the North East’s devolution deal. However, mayor Kim McGuinness has been reluctant to commit to further financial backing for the project.

She said in September that she was “absolutely supportive” of the development but was not yet prepared to pledge more money for it, unlike the £25 million cash injection the North East Combined Authority is giving to the Crown Works film studios in Sunderland.

Anneliese Hutchinson, Gateshead Council’s strategic director for economy, innovation and growth, said on Wednesday: “The development continues to make progress. Ground enabling works have been successfully completed including land remediation and mine grouting, meaning the site is ready for construction works to begin.

"We continue to work with our development partners to finalise costings and funding to bring this important regional development forward. Like any development of such magnitude, this takes time, and we will be able to provide further updates soon.”

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