Political row continues over funding bid for Sunderland film studios

North East Conservatives have come under further criticism for their stance on government funding for the proposed Crown Works film studios in Sunderland, this time from the Lib Dems.

FulwellCain, the joint venture behind the studios, says central Government needs to provide up to £20million each year for 10 years for the plans to become reality.

Chancellor of the Exchequer Jeremy Hunt has been given until his March 6 budget by the venture to announce financial backing.

FulwellCain says the Pallion studios would create 8,500 new jobs and an annual £334million for the North East economy. It has already secured £450million of private investment.

Politicians, a string of North East councils, newspapers including the Sunderland Echo and a public petition are urging Mr Hunt to commit.

However, the leader of Sunderland's Conservatives, Cllr Antony Mullen, has said: "It is simply unreasonable to say that the Government should give a handout to private business" and that the studios should be entirely privately financed.

He has since written a joint letter with Conservative North East mayoral candidate Guy Renner-Thompson to the Chancellor, suggesting a "bespoke package of support, designed by you (Mr Hunt), which better reflects the business case for this project".

Mr Renner-Thompson has said he would "leverage" money from the mayor's £48million-per-year investment fund into the studios.

The names of 11 of Sunderland's 13 Conservative councillors also appear on the letter. The other parties are not impressed.

Sunderland's Lib Dem leader Paul Edgeworth said: "Despite this bizarre and desperate backtracking by the local Conservatives to try and save face, I hope we can take the party politics out of this so we can all get behind a workable solution to get this development off the ground - whether that is the developer's plan or something else that may be suggested by the Chancellor.

"People on Wearside won't forgive any politicians that let Labour/Conservative rivalries and election campaigning get in the way of delivering game-changing jobs and investment for Sunderland."

Labour's mayoral candidate Kim McGuiness said: “It is absurd in the extreme for the Tory mayoral candidate to write to the Chancellor urging him NOT to put £200million into Sunderland."