A Derwentside music co-operative that organises two major festivals will get more than £48,000 from Durham County Council.
Northern Recording Ltd, in Delves Lane, is best known as organiser of the Stanley Blues Festival, which celebrated its tenth anniversary last August with a crowd of 15,000.
It also stages the Allensford Roots Festival near Consett, although the foot-and-mouth epidemic and funding problems have meant the festival has not been held for two years.
North Recording provides recording equipment, rehearsal space and supports and encourages upcoming musicians such as singer and rock guitarist Pete Shoulder, from Waldridge, near Chester-le-Street.
Cultural services director Patrick Conway said the £48,590 grant, 1.5 per cent more than last year, would enable the group to attract more grants, including £35,000 from the Northern Rock Foundation.
He said: "A service agreement is being finalised for the forthcoming year that will cover support for musicians and bands involved in the contemporary music scene.
"The money will cover access to state-of-the-art recording facilities, advice and guidance on musical development and the music industry. A programme of work with schools will also result from the agreement."
The group will again organise the Stanley Blues Festival and Allensford Roots Festival in association with Derwentside District Council and the county council.
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