Newcastle has announced plans to earmark £600,000-a-year for cultural projects.
Newcastle City Council was criticised by stars such as Sting, Mark Knopfler and Bryan Ferry when it announced last year budgetary pressures meant it had no cash for the arts.
The budget, which is being debated on Wednesday, has found £600,000-a-year for arts subsidies.
Leader of the Labour Council Nick Forbes said the money for the Newcastle Culture Fund came from a range of sources including public health funding and income from a loan to Newcastle Airport.
The council will also pursue a partnership with Newcastle University where savings generated from shared services between the university and the council will be reinvested in the cultural life of the city.
The turn-around has been backed by the Arts Council England.