Sunderland Crown Works Studios funding setback: Pallion councillors angry and doubtful over 'white elephant'

The vision for the vast £450 million Crown Works Studios was originally led by FulwellCain, a joint venture between global entertainment company Fulwell 73 and Cain International, who had hoped to build 19 sound stages at the riverside site and create thousands of jobs.

Preparatory works on land next to the Northern Spire Bridge are already under way, paid for through public money, but building work on the studios development has yet to begin.

In an announcement on Monday (June 30), it was confirmed Sunderland City Council and the North East Combined Authority (NECA) are looking for fresh investment for Crown Works Studios after its initial backers, financiers Cain International, withdrew.

Sunderland City Council said that Fulwell Entertainment “remains a committed champion of the scheme”, but that the proposals were now “being presented to the investment market, with the aim to put in place a final funder and developer later this year."

For Liberal Democrat councillor Martin Haswell, who represents the Pallion ward where the film studios scheme is planned, the funding update is a "serious blow to Pallion" and raises questions about the future of Crown Works Studios, and its associated benefits to city residents.

“This is a serious blow to Pallion, one of the areas of Sunderland most in need of jobs and investment," he said.

The Pallion councillor added the "studios came with the promise of good, well paid jobs for local people" and that these jobs have "potentially been dashed" following the news that Cain International has withdrawn funding.

Cllr Haswell is a member of the council's Planning and Highways Committee and was one of the councillors who voted to approve the planning application for Crown Works Studios at a meeting of the panel on March 25, 2024.

Speaking at the time at City Hall, the councillor welcomed the thousands of jobs the scheme was expected to create, along with" local labour agreements and apprenticeships for local kids", and added the studios were a "massive opportunity" for Pallion as "one of the most deprived areas in the city."

Following this week's announcement on funding for Crown Works Studios, Cllr Haswell said he hopes Sunderland hasn't been "sold a white elephant by the council and regional mayor".

"The progress to prepare the site for development is welcomed and I just hope momentum will not be lost," he added.

"There were previous plans to build new homes on the site and that plan would be welcomed by local residents as well.”

Liberal Democrat councillor Steve Donkin, who also represents the Pallion ward, noted the funding announcement for Crown Works Studios came just months after the Culture Secretary Lisa Nandy said she expects to see progress at the site being made "very quickly".

"The progress made so far to prepare the site for development is welcomed and I just hope that the money spent so far hasn't been wasted," Cllr Donkin added.

"This is a key redevelopment site, not just for Pallion but for Sunderland more broadly and we want to see the development come to fruition."

Local leaders behind Crown Works Studios have said they “remain confident” in the scheme’s future and that they expect to have new funding in place before the end of this year.

North East mayor Kim McGuinness, in a statement released on Monday, said the mayoral authority was "supporting Sunderland City Council in the job of preparing the site, which can eventually be the largest film and TV production complex in the UK outside of London and the South East".

The regional Labour mayor said she was "confident that this will be a flagship site in a thriving industry for years to come".

She added: "In the process we’ll create thousands of new jobs for local people and end the days where people have to leave the North East to pursue a career in creative industries.

"This is why the project has to date secured a public sector funding package worth £120m including £25m which we have put in to begin preparation of the site at Pallion on Sunderland Riverside."

Planning permission for the Crown Works Studios development was secured last year (2024), but detailed approval has only been granted for phase one of the project that would include four sound stages, production offices, workshop buildings, and a multi-storey car park.

A specialist agent is being appointed by Sunderland City Council to engage with investors, which the local authority said would still include the likes of Fulwell Entertainment – who were behind the Sunderland ‘Til I Die Netflix series.

Councillor Michael Mordey, Labour leader of Sunderland City Council, stressed the film and tv studios "represent a game- changing opportunity for the city and we cannot wait to see them progress".

“There’s an absolute commitment to secure the best possible delivery partner to move this forward and we expect that we will have funding confirmed and be ready to progress the first phase of the studios by the time remediation works complete later this year," he added.

A spokesperson for Fulwell Entertainment, in a statement this week, said they "remain committed to working with the council to find appropriate private funding, complementing the combined NE Authority and wider government funding needed to make these world class production studios a reality.”

Cain International have also previously been contacted for comment.