Ferry landing increased cost funds approved

The estimated cost of the new ferry landing has risen by almost £6m

Funds to cover a multimillion-pound increase in the cost of a new ferry landing have been approved.

Fears for the future of the Shields ferry crossing were raised after it emerged its current facility in North Shields is no longer fit for purpose.

A £14.6m package to build a new landing was agreed last summer, however this week the North East Combined Authority (Neca) was asked to allocate another £5.9m to cover rising costs.

North East Mayor Kim McGuinness said the money would "fully safeguard" the ferry, which runs across the Tyne to South Shields.

The latest funding has been allocated from the £1.85bn transport pot from central government announced earlier this year.

McGuinness said: "We've all seen the headlines about rising construction costs.

"We haven't been immune to that so we have had to put extra funding in to make sure the beloved ferry is protected.

It is hoped the landing will be completed by 2027.

In all, more than £20m has now been allocated to the project

In 2020, the estimated cost stood at £8.8m. Since then, the project has been beset by issues, the Local Democracy Reporting Service said.

Operator Nexus lost a £5.6m grant from the government's Getting Building Fund because it could not meet a requirement to complete construction by spring 2022.

The scheme was later included in a Levelling Up Fund bid from North Tyneside Council as part of a wider regeneration of North Shields, but the application was unsuccessful.

Last year Nexus estimated the cost at £14.6m due to the effects of inflation, but that has now increased further.

The publicly owned organisation indicated the rising bill was because of the "very complex" nature of building at the Fish Quay, but said it could not confirm the full price tag until it had appointed a contractor.