NORTH-East arts leaders are predicting that extra funding will revitalise the region's cultural scene.

Ahead of publishing its detailed budget plans, at the end of March, Arts Council England has confirmed there will be substantial increases in funding for individuals, arts organisations, cultural diversity and young people.

During the next three years, £25m will be allocated for individual artists through open application programmes, compared with £4.5m in 2002/03.

Regularly funded arts organisations will see an increase in funding from £230m in 2002/2003 to £300m in 2005/2006, and also within three years, 32 Creative Partnerships involving schoolchildren will receive at least £45m a year.

Arts Council England will invest significantly in culturally diverse acts and change the employment profile and governance of arts organisations to incorporate more ethnic minorities.

Chairman Gerry Robinson said: "Our ambition is to place the arts at the heart of national life and we are planning a bold programme of investment to achieve that aim."

He said the extra £75m a year being invested in the arts by the Government and the overall increase in spending, from £189m in 1999 to £410m in 2006, would allow the arts to thrive.

As part of a merger of the ten regional arts boards to form a single organisation last April, Newcastle Northern Arts changed its name to Arts Council England, North- East, this week.

The funding application system has also been simplified, with more than 100 application schemes being reduced to five.

Andrew Dixon, executive director of Arts Council England, North-East, said: "The Capital of Culture bid has shown that the arts in the North-East are stronger than ever before."