The funding, part of a new Creative Mayoral Development Zone, will support Sunderland’s ambitions to grow its creative sector and accelerate regeneration in the city.

The zone will help advance the next stage of the Riverside Sunderland scheme, including commercial and residential developments, as well as the first phase of the Crown Works film studios.

Kim McGuinness, North East Mayor, said: "I want to give our brilliant creative industries the opportunity to thrive, from individual artists up to our plans for a first film studio in our region, creating new jobs for local people as we do so.

"We are launching a new Creative Mayoral Development Zone in order to speed up the transformation of Sunderland with creative industries at the heart of new urban neighbourhoods that are attractive and affordable places to live.

"Growing our creative industries is a key part of our Local Growth Plan for the North East.

"Now we will be working alongside Sunderland City Council to boost local investment and unlock the huge potential the city has, creating jobs in the industries of the future and high-quality and affordable homes for local people."

The initiative will also create new space for artists and creative businesses to grow alongside wider developments.

Councillor Micheal Mordey, leader of Sunderland City Council, said: "With over £650m invested to date, Riverside Sunderland is locally and nationally regarded as one of the UK’s most ambitious and transformative regeneration programmes.

"It’s fantastic that Kim and the North East Combined Authority will be helping to accelerate the next stage of this important development, that will create jobs and opportunities for residents and businesses in Sunderland and across the North East."

The North East Combined Authority will invest £300,000, matched by £300,000 from Sunderland City Council, to support the next phase of regeneration.

This will include new and affordable housing, high quality employment, leisure and creative facilities, and phase 1a of Crown Works Studios.

The development zone forms part of Sunderland’s 2040 vision for Riverside Sunderland.

It aims to bring together public and private partners to attract funding and deliver:

• The first phase of Crown Works Studios could deliver c.230,000 sq ft of production floorspace
• Key projects from the 2020 masterplan, including the Vaux housing development, the Sheepfolds neighbourhood, and a new mixed-use high street with Capital + Centric
• Large-scale regeneration across neighbourhoods including Deptford, Old Sunderland, Sunniside, and St Peter’s

The North East Combined Authority will provide regional perspective, strategic oversight, and coordination with neighbouring council areas, in line with the region’s emerging Spatial Development Strategy.