Revised plans and a new timetable have now been approved for the scheme as costs hit £350m+ from an original £260m.

The complex was due to be completed in 2025 but has now been pushed back to 2027.

A hotel originally planned for the site has also been moved to vacant land directly opposite The Sage development with the freed-up plot now set to become an urban park.

Gateshead Council said: ” A number of global factors outside the Council and its partners control have impacted, and are continuing to impact, on the development. The issues include the ongoing impact of Covid on the supply chain, inflationary pressures, energy prices and the war in Ukraine.

“To mitigate these impacts the developer has broken down the scheme into smaller delivery packages.”

The new timetable will see:

• The Sage International Conference Centre will be opened in Autumn 2025
• Dual branded Hotel will be opened in Autumn 2025
• The Sage Arena will open in 2027

Construction work is due to begin this Autumn on the Sage International Conference Centre where BAM has carried-out enabling works and a main contractor appointment is imminent.

Last month Russell WBHO was appointed contractor for the hotel where work is set to start before the end of the year.

Martin Gannon, Leader of Gateshead Council, said: ‘‘Today marks another major milestone in the project and we’re looking forward to bringing the Sage Arena and ICC to Gateshead, attracting high-profile events and conferences to our region.

“The development will bring numerous opportunities and benefits to our residents, attracting visitors and creating jobs and bringing millions of pounds of investment to Gateshead and the North East.’’