Hopes to divert funding cash from halted Glassworks project in South Shields

The Glassworks building, which has been halted.

Council chiefs are hoping to divert cash from the halted Glassworks project to help regenerate other parts of South Shields’ riverside.

South Tyneside Council was awarded £3million from the Getting Building Fund in February 2021 to support the creation of The Glassworks, planned a state of the art, glass-fronted riverside office building in South Shields.

However, in October council chiefs revealed spiraling costs blamed on Brexit and the economic climate had led to the decision to permanently halt the plans, along with those for a cinema in the town centre.

Councillor Mark Walsh, cabinet member for regeneration and economy, said the impact of Brexit and global supply chains meant the plans now came in £6million over budget.

The Glassworks building, which has been halted, would have been linked up to the landscaped area nearby.

It halting of the project also comes as questions hang over the merits of such buildings, after covid and the rise of homeworking saw a trend away from office working.

The council said it was hopeful the funding allocated could be used elsewhere in the borough.

A spokesperson for the council said: “In order to unlock prime development sites we must do everything we can to harness and secure all external funding sources available to us or our partners.

"We have already secured millions from Brownfield Release, Future High Street and LEP funding streams to get prime sites ‘shovel ready’ for development across South Shields town centre and riverside.

A cafe was included in plans for The Glassworks.

“We are working to ensure that the funding allocated for the former ‘Glassworks’ project remains in South Tyneside and are exploring options to ensure that the funding continues to help increase employment opportunities and prosperity in the region.

“Development in South Tyneside, and the wider North East, is challenging and particularly time consuming given current market conditions however we remain committed to making sure that the money we have, and the funding we receive, creates the right conditions for sustainable growth for our residents and businesses.”

The Glassworks project would have taken shape on the riverside between the existing BT building and The Customs House.

The council is already working with developers on plans to regenerate disused former docklands to the west at Holborn, where it seems likely chiefs will try to divert the funding.

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