MORE than 120 North-East arts organisations will gain cash help from £25m of Northern Arts funding in the next two years.

Thousands of other groups will also benefit from the Newcastle charity's ability to raise money from the National Lottery and other schemes.

The groups to benefit this time are:

l £2m for the Music Centre, Gateshead

£1.4m for artists and arts organisations through the Regional Arts Lottery Programme

£257,500 for the Baltic Contemporary Art Gallery, in Gateshead

£180,000 investment for the re-opening of the Arc in Stockton.

£100,000 to be divided between ten artists through a new programme called Encore 10x10.

Tees Valley and County Durham highlights include: £180,000 for the re-opening of the Arc, in Stockton; Cleveland Theatre Company's funding doubled to £105,000 this year; Darlington Arts Centre funding up 27 per cent to £94,180; £35,000 to assist Middlesbrough's plans for a new gallery and crafts centre and £14,000 for drama at Bishop Auckland Town Hall.

Among the smaller awards are the new Gala Theatre, Durham City, which sees an increase in funding from £20,000 in 2002/3 to £30,000 in 2003/4.

Money will be on offer for the development of creative and cultural businesses and to strengthen the arts organisations and assist developing artists to develop ideas and make new work.

George Loggie, chairman of Northern Arts, said: "Northern Arts has succeeded in attracting further new investment to the region.

"This budget will build on the strength of our artists and arts organisations. It puts creativity and education at the heart of our work."

Andrew Dixon, chief executive of Northern Arts, added that the quality of the arts in the region would be a key factor in Newcastle's bid to become European Capital of Culture