Tyne Tunnel Tolls: A Controversial Increase?
The Tyne Tunnel toll is set to rise by up to 20p, a move that has sparked debate and concern among residents and commuters. The decision was made by NECA's cabinet, who approved the changes without any discussion or dissent, a move that has raised eyebrows.
The report, which recommended the toll increase, warned of a "substantial financial risk" if the tolls were not raised. The charges are necessary to cover operational costs and the borrowing costs incurred during the construction of the second tunnel, which opened in 2011. This new tunnel was built through a partnership with a private company, and the combined authority pays the company a 'shadow toll' to manage and operate the tunnels.
The 'shadow toll' is an RPI-linked figure that increases every January and is currently £2.70 per vehicle journey through the tunnel. NECA emphasizes that the real toll charged to motorists should remain as close as possible to this rate to ensure the combined authority can fund the 'shadow toll' without incurring major losses.
Martin Gannon, the leader of Gateshead Council, explains the historical context of the arrangement. He states, "It was built by a private company, it was off the public purse. Therefore, as a consequence, we have this arrangement with charges." This partnership with a private company was necessary to fund the construction of the second tunnel, a decision that has led to the current toll structure.
