Anger over government arena funds

Sheffield Arena was built with funds from Sheffield City Council

A government agency has agreed to help fund a major new arena in Leeds despite claims it could damage the future of another venue in the region.

According to an independent study, the Leeds Arena, due to open in 2012, will boost the region's economy overall.

But it estimated there could be a 24% drop in attendances for concerts and events in Sheffield.

Yorkshire Forward said it had agreed to part fund the venue at Clay Pit Lane, subject to government funding.

The arena, to be run by major international operator SMG, is expected to generate nearly £30m a year.

'Serious damage'

But Sheffield International Venues (SIV), the group behind Sheffield Arena, has objected to the use of government funding.

Chief executive of SIV Steve Bailey said: "An arena in Leeds will seriously damage our business in Sheffield and it will cause job losses.

"I could understand Leeds residents and the council wanting their own arena and if they decide to use council funds in this way Sheffield would have to accept it.

"They [Yorkshire Forward] should not be funding an investment in one part of our region that will seriously damage an existing venue."

Tim Riordan, Yorkshire Forward chief executive, said: "Following extensive, independent evaluation I'm pleased to confirm that Yorkshire Forward's Board has confirmed its decision to invest in the development of the Leeds Arena.

"The proposal will now be submitted to central government for funding.

"The board took account of the concerns expressed by the partners in Sheffield in reaching their decision, and will include these representations in the case that will now go to government to approve the investment."

Councillor Andrew Carter, Leeds Council's joint leader, said there was no reason government funding should not be used.

He said: "Public funding has gone into Manchester's arena, Liverpool's arena, Nottingham's arena, with Nottingham only 40 miles from Sheffield, the same distance that Leeds is from Sheffield."