Plans for a new 12,500-seat entertainment venue in Leeds have been criticised by council and leisure bosses from neighbouring Sheffield for using government money to help pay for the scheme.

Sheffield International Venues (SIV) believes that Leeds City Council's (LCC) proposals, which are backed by the government-funded Yorkshire Forward, would threaten the viability of the 13,000-seat Sheffield Arena. SIV's chief executive, Steve Brailey, said: "An arena in Leeds will seriously damage our business in Sheffield, and it will cause job losses.

"I could understand Leeds residents and the council wanting their own arena, and if they use council funds in this way, Sheffield would have to accept it. "But we object if Yorkshire Forward is helping to fund the project. They should not be funding an investment in one part of our region that will seriously damage the business of an existing venue."

Sheffield Arena is operated by Live Nation on behalf of SIV, and has hosted a range of events including entertainment shows and live music concerts.