Breaking News: Leeds Arena moves forward with funding green light

PLANS for the long-awaited Leeds Arena took a huge step forward today after the Government gave the green light for a £9.9m funding package to take the 12,500 seat project forward.

The decision follows the snubbing of an £18m bid from regional development agency Yorkshire Forward earlier this year, which was turned down because the Department of Business, Innovation and Skills said Leeds City Council’s plan for the arena, which could cost more than £60m, did not provide value for money.

Yorkshire Forward has now scaled back the amount of taxpayers’ money needed for the scheme, which is to be built on land at Claypit Lane.

Both Yorkshire Forward and Leeds City Council today welcomed the decision and said the first phase of development could go ahead “with confidence” next year.

Tom Riordan, chief executive of Yorkshire Forward, said: “This is a landmark decision for the Leeds City Region and one which will have a significant impact on its economy.

“The city’s cultural offer is integral to its economic growth and a world-class arena will help Leeds to achieve its ambition to “go up a league” and rival major European cities.

“We strongly believe that this is not just an Arena for Leeds, but a catalyst for the tourism and entertainment industries across Yorkshire and Humber. As a result of the decision today, many people and businesses will reap a real economic dividend from the benefits that additional visitors to Yorkshire and Humber will bring.”  

The mulit-use arena will accommodate a range of events and it is estimated that up to an extra £28m will be contributed each year to the local economy as visitors come to the arena.

The arena will be operated by SMG Europe.

The plans for Leeds Arena have been attacked by Sheffield MPs, who have said the bid could affect business at Sheffield Arena.

Will this decision kick-start plans for the arena or is it another false dawn? Please leave your comments below.