THE cultural landscape of the region's business community is to be put through an £8.5m overhaul that is expected to create jobs and prosperity.

Up to 650 small and medium-sized firms will benefit from a range of projects due to be carried out during the coming years.

Cultural and arts-based companies, ranging from glass blowing to dry stone walling, will find opportunities to enhance skills and productivity.

A ground-breaking bid to bring £3.8m worth of European investment to the region's cultural sector was led by Arts Council England, North-East.

The total value of the project, the first of its kind in the area, was swelled to £8.5m by the efforts of 15 cross-sector agencies, which brought together public and private match funding.

Jane Robinson, director of external relations at Arts Council England, North-East, believes this is not only a major boost to the cultural sector, but also a significant contribution to the economic development of the region.

She said: "Culture and creativity play a key role in developing the region's economy.

"This initiative will have a huge impact on building skills and creating jobs, both within and beyond the cultural sector."

The cultural sector has a strong part to play in the region's economy, with an estimated 3,000 small to medium-sized enterprises employing 30,000 people.

John Rundle, director of Europe in Government Office North-East, said: "This is an exciting, new project, which allows small cultural businesses to access European funding on a very substantial scale."

Tim Cantle-Jones, board member, One NorthEast, said: "This is a tremendous coup for the region as it is one of the largest allocations of European money for cultural developments anywhere in the UK to date.

"Those projects set to benefit demonstrate the real breadth of talent that is now building the reputation of the North-East as a cultural centre."

Among the projects to benefit, Studio 64, in Middlesbrough, will provide a range of support for at least four businesses and find ways to further deliver festival activity.

Durham City Arts will build on the work of Fowlers Yard to provide support both for business and professional development, including creating more festival activity.