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A centre for adult mental health care will be set up with £54m from the Government.
Northumberland, Tyne and Wear NHS Foundation Trust (NTW), will use the money for the centre of excellence in inpatient acute mental health care for people in Newcastle and Gateshead.
James Duncan, deputy chief executive at NTW said "This is excellent news, enabling a significant investment to be made in creating state of the art facilities for those with complex mental health needs.
"We will work with service users, carers, and the public to ensure that we create world leading environments that truly support people on their journey to recovery, and that in doing so we also continue to break down the stigma associated with poor mental health."
The funding is part of £963m to improve health facilities across England, announced by Health Secretary Matt Hancock (pictured).
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