Multi-million pound plans to revamp an iconic arts venue in South Shields have been given the green light, with work due to start this spring.

South Tyneside Council’s planning department has approved two applications for The Customs House at Mill Dam in the town.

The venue, which is operated by The Customs House Trust Limited, sits within a Grade II-listed building and was recently earmarked for regeneration after the council was successful in a bid from the UK Government’s then titled ‘Levelling Up Fund Round Three.’

An artist's impression how redeveloped Customs House in South Shields could look (Lightwell) | IDPartnership/LDRS

placeholder image — An artist's impression how redeveloped Customs House in South Shields could look (Lightwell) | IDPartnership/LDRS

The UK Government funding aims to create a revitalised South Shields town centre over several projects, including the relocation of South Tyneside College, and around £7 million was allocated for The Customs House, the council previously confirmed.

South Tyneside Council submitted two applications to its own planning department last summer (2025), including a listed building consent application setting out what improvements were proposed.

The applications described the project as “internal alterations and refurbishment of The Customs House and Daltons Lane Workshops, erection of central glazed atrium, double storey extension to the Daltons Lane workshop and adjoining store room to the theatre, along with associated work.”

A design and access statement submitted to council officials said the project aimed to “develop the existing offer of The Customs House to provide an integrated and expanded cultural offer whilst preserving the listed building”.

It was noted that “important rehearsal and performance spaces are proposed alongside improved food and drinks facilities to ensure long-term viability of the existing facility”.

Some of the objectives of the project included “creating an attractive, engaging community cultural offer to attract visitors”, expanding the cultural offer and enhancing existing facilities, and “restoring, protecting and safeguarding the important heritage elements of the existing building”.

An artist's impression of how redeveloped Customs House in South Shields could look (cafe) | IDPartnership/LDRS

Planning documents indicated the plans aimed to “rethink the entire access strategy of the building”, with a new main entrance to the building taken from Daltons Lane, along with new public realm and hard landscaping to “invite visitors to the new entrance”, improved toilet facilities, “new enhanced café space” and more.

South Tyneside Council previously circulated CGI images of the redeveloped Customs House from IDPartnership, showing how the transformed spaces could look.

The design and access statement added the plans aimed to boost The Customs House’s offer and to help it “continue to be a key cultural destination for South Shields and the wider borough.”

After considering the planning applications, South Tyneside Council’s planning department approved both in late-December, 2025.

A council decision report said the proposal “would result in no significant harm to the visual amenity of the area and would preserve the character and appearance of the Mill Dam Conservation Area as well as the settings of affected listed buildings”.

It was also noted that the plans were “acceptable in terms of residential amenity, highway safety, ecology, flooding and drainage and ground contamination, subject to planning conditions.

The council decision report adds: “This application proposes to enlarge the existing Customs House and Daltons Lane Workshop buildings in order to provide a refreshed offering for the Customs House theatre business.

“Given the existing theatre use would continue and the proposed development seeks to enhance the offering it is considered that the proposed development would be acceptable in principle.”

An artist's impression of how redeveloped Customs House in South Shields could look (Entrance) | IDPartnership/LDRS

Following the planning decisions, South Tyneside Council has confirmed works on The Customs House development are expected to start in coming months.

Councillor Margaret Meling, South Tyneside Council’s cabinet member for economic growth and transport, welcomed the “incredibly exciting project” for the cultural venue.

“The council and The Customs House are working to refine the internal design of the building, ensuring it aligns with the approved planning permission while keeping disruption to the programme to an absolute minimum,” Cllr Meling added.

“This is an incredibly exciting project, backed by secured government funding, that will deliver a modernised cultural venue for South Tyneside.

“Both partners remain committed to getting the design right so that the refurbishment delivers long‑term benefits for audiences, performers and the wider community, and we look forward to a start on site in the spring.”

For more information on the planning applications, visit South Tyneside Council’s planning portal website and search reference numbers 250379 and 250381.