Tyne Tunnel drivers set to face near 10% hike in toll charge

The cost of driving through the Tyne Tunnel is set to jump again next year, councillors have been warned.

Another toll price increase is due to come into force next May and is expected to be a 20p uplift for cars and 40p for lorries.

The rise of roughly 9% would take the cost of a single journey through the river crossing to £2.40 for car, van or buses weighing less than 3.5 tonnes and £4.80 for LGV, vans or buses over 3.5 tonnes.

Drivers who use a pre-paid account to pay their charges currently receive a 10% discount.

A North East Joint Transport Committee (JTC) report confirms that the toll increase is expected because the five Tyne and Wear councils, which jointly own the tunnel, are contractually obligated to make inflation-linked payments to operator TT2 to cover its costs and pay back debts incurred when the second tunnel was built.

A final decision on the toll hike is due to be made by the JTC’s Tyne and Wear sub-committee in January 2024.

The report, which was presented to a scrutiny panel last week, states: “Payments to TT2 under the concession contract increase annually in line with RPI [Retail Price Index].

"The financial model for the Tyne Tunnels and the repayment of the debt incurred in the New Tyne Crossing project assumes that tolls will be maintained in real terms to match the rise in contract payments to TT2 and service debt financing on the tunnels. 

“To allow a break-even position on the Tyne Tunnels revenue account to be maintained, it is therefore assumed that toll increases will be applied where possible, in line with the order under which the tunnels have the power to charge tolls.

“The toll charged to users of the tunnels can be increased in line with RPI (to a round 10p figure). Levels of inflation… remain such that it is forecast that an increase will be required for both Class 2 and Class 3 vehicles (estimated to be 20p and 40p respectively).”

In May this year, the car drivers’ toll rose by 30p and the HGV toll by 50p, having been frozen for two years before that.

Amid concerns over the financial impact that decision would have on struggling residents suffering through a cost of living crisis, that hike had been postponed three months to avoid adding to families’ money woes during the winter months.

However, local transport officials warned at the time that the delay cost £1.5m and that the councils’ Tyne Tunnel cash reserves would “be reduced to an unacceptable level” had the toll not increased.

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