Crown Works film studios funding setback won’t kill Sunderland’s Hollywood dream as govt promises support

Culture secretary Lisa Nandy told MPs on Thursday morning that her department was working alongside local leaders, as they search for new funding for the flagship film and TV studios project.

It emerged on Monday that investment firm Cain International, who had led the original plans in a joint venture with Fulwell Entertainment, have withdrawn from the £450 million vision to build the “world class” production complex on the banks of the River Wear in Pallion.

Sunderland City Council and the North East Combined Authority are now seeking new investors, but have said they “remain confident” and expect to have new money in place this year.

Sunderland Central MP Lewis Atkinson asked Ms Nandy on Thursday how the Government’s new creative industries strategy, which specifically highlights the “game-changing plans for film production in Sunderland”, would ensure the Pallion development is delivered.

Speaking in the House of Commons, she replied that the Crown Works would bring “great jobs and growth to the North East of England and help our amazing film industry thrive”.

Ms Nandy said: “Anyone who has ever visited Sunderland will know why the film industry is based there and why it is thriving there, and we are determined to support that. We are working with Sunderland City Council and the North East Mayoral Combined Authority – they are really confident that a private investor will be secured to support Crown Works film studios.”

The Government has already put £25 million into the Crown Works plans, via the devolution deal which established the North East mayor last year, while the local authorities have committed to a total public investment of up to £120 million.

That public money is being used on the current works preparing the riverside plot for redevelopment.

City council leader Michael Mordey said on Monday that he expected to have new funding for the Crown Works in place by the time those remediation works are finished later this year, ready to begin a first phase of building.

Full planning permission has already been granted for an initial construction phase that would include four sound stages, though the wider Crown Works vision was for 19.

When previously asked about the Crown Works in April, Ms Nandy told the Local Democracy Reporting Service that the Government was “working very closely to make sure that moves at pace and that, [with] the investment we have put in, people start to see results very quickly”.

Fulwell Entertainment, who were behind the Sunderland ‘Til I Die Netflix series, has said it remains “committed to working with the council to find appropriate private funding” to make the film studios vision a reality.

John McCabe, chief executive of the North East Chamber of Commerce, described Cain’s withdrawal as “a setback”, but said that “the ambition behind it remains as important as ever”.

He added: “This is a development with real potential to drive economic growth, create skilled jobs and strengthen the North East’s reputation in the creative industries.

“We remain hopeful that a positive way forward can be found, and the Chamber stands ready to support any future work or conversations aimed at securing new investment.”