The cost of demolishing the Gateshead Flyover has risen by millions of pounds, with the project now expected to cost around £31 million significantly higher than the original estimate.
Gateshead Council confirmed the revised figure as demolition of the ageing A167 structure continues, while officials step up efforts to secure additional funding from the Government.
The flyover has been closed since December 2024 after engineers raised concerns that the concrete structure was at risk of collapse. Demolition work began in April 2026 and is due to be completed by October, with the busy Park Lane roundabout currently shut to allow round-the-clock demolition during the most complex phase of the project.
The previous Labour administration initially allocated £18 million towards the scheme in March 2025, while North East Mayor Kim McGuinness pledged a further £2.5 million to support the work.
However, the council has now confirmed the overall cost is expected to reach approximately £31 million.
Despite the increased price tag, council bosses insist the demolition remains on schedule and that the higher costs will not delay the project. Instead, the authority hopes to recover some of the additional expenditure through future government funding.
The council is currently in discussions with the Department for Transport over a bid to the Government’s £1 billion Structures Fund, which supports the repair and replacement of ageing bridges, flyovers and tunnels. If successful, the funding would help deliver a permanent replacement for the flyover, including a redesigned road layout with signal-controlled junctions and segregated walking and cycling routes.
Anneliese Hutchinson, Gateshead Council’s Strategic Director for Economy, Innovation and Growth, said the demolition had become one of the most technically challenging projects of its kind in the country. She said carrying out demolition work overnight to reduce disruption to traffic had added to the overall cost, alongside the demolition of Computer House and the work needed to secure and restore the site once the structure has been removed.
Ms Hutchinson added that all costs had been independently reviewed by construction finance specialists, who concluded the spending was appropriate for a project of this scale and complexity.
Financial reports presented to councillors earlier this month show the council’s spending allocation for the demolition in the current financial year has increased from £11.7 million to £24 million, in addition to more than £6 million already spent during the previous financial year.
The council has repeatedly argued that the Government should contribute towards the cost, noting the flyover was originally built in the 1960s as part of the national highways network before responsibility was later transferred to the local authority.
A Department for Transport spokesperson confirmed discussions had taken place with Gateshead Council ahead of the Structures Fund application deadline.
They said the Government would assess all bids before announcing successful projects later this autumn.
Even after demolition is complete, disruption is expected to continue. Gateshead Council has warned that the road beneath the flyover will remain closed because it has been damaged during the works.
Residents will be consulted in the coming months on long-term plans for the route once demolition has finished.
