North East tourism and business funding slashed

Jul 15 2010 by Adrian Pearson, The Journal

REGENERATION bosses in the North East have slashed funding for tourism and business organisations, and warned more bad news is coming.

Development agency One North East has told more than 20 organisations, including many in Northumberland’s tourist industry, that it will take back £2.7m from the money available for day to day costs.

And in September agency bosses will reveal nearly £33m worth of cuts which threaten to halt major city regeneration schemes.

Voluntary redundancies are also now expected at One North East following the coalition Government’s plans to close down the agency by 2012.

This week Alan Clarke, chief executive at the agency, told his counterparts across the region that there would be an immediate 10% cut.

City regeneration firm 1NG, tourism group Hadrian’s Wall Heritage, Blyth renewable energy firm Narec and the Durham City Vision team are all among those losing some funding.

Spending bosses will also have to look again at building schemes across the North East, including flagship schemes such as Newcastle’s plans for a groundbreaking new home for the North’s science industry.

Supporters of the agency have hit out at the economic “vandalism” carried out by the Conservative Liberal Democrat coalition Government.

Earlier this month, the Department for Businesses asked One North East to hand back more than £32m earmarked for vital business support and confirmed plans to close it within two years.

Newcastle and other councils have since been told final decisions on what will go will be made public following a September board meeting.

Until then city leaders will not know if they have to find extra cash for plans such as the Science Central HQ to be built on land opposite St James’ Park or hopes of turning the former Toffee Factory in Ouseburn into a home for new digital businesses.

Last night Blaydon MP Dave Anderson hit out at the 10% cuts.