South Tyneside College will get more than £1m to build 'Social Enterprise Incubators', replacing poorer quality accommodation.
It will be part of a new Learning Zone which is aimed at making their curriculum more employer-focused.
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Sandiford, a former legal secretary originally from Redcar, was convicted of drug smuggling offences and sentenced to death in 2013.
Durham Crown Court heard that one of the male victims suffered a triple-fractured jaw, while left lying in the gutter, unconscious.