Gateshead councillors have expressed shock at the £32.6m forecast cost of demolishing the A167 flyover, with some calling for ways to reduce the final bill. The figure marks a significant increase from the £18m originally set aside for the works in March 2025.
Costs rise from initial estimate
At the council's corporate resources scrutiny committee, Reform councillor for Winlaton and High Spen, James Wright, said: "I am actually staggered by the costs from the estimate that were forecast to what it is now come to." Reform councillor for Birtley North and Lamesley Steven Mullins also noted the eventual difference between the estimate and forecast total as "quite a significant jump".
The local authority originally allocated £18m for the demolition in March 2025, based on early estimates, though further studies or assessments had not yet been undertaken. A recent report stated the figure was "always subject to change".
Factors behind the increase
The significant contributing factors to the rise were identified as the 24-hour nature of the works, the procurement of props to support the flyover, and the demolition design. Elected representatives were reassured that engineering consultancy firm AtkinsRealis has been appointed to provide independent assessments on the costs and contracts associated with the demolition.
The committee was also informed there may be opportunities to reduce the final cost to the council through government grants. The North East Mayoral Strategic Authority pledged £2.5m towards the project last year. A £7.3bn government scheme, called the Structures Fund, providing funding to repair or replace local highway structures, was also cited.
Regeneration plans and next steps
Now that the flyover has been demolished, the local authority intends to launch a consultation on the town centre regeneration later this month. According to the council's online flyover page: "We've already been working on redeveloping the High Street South area, and the demolition of the flyover will help deliver our vision to radically transform the centre of Gateshead by providing new homes for people of all ages and new spaces for local services."
The page adds: "Nearby, we're working with social impact developers Capital&Centric to give the historic Gateshead Old Town Hall a new lease of life as a thriving neighbourhood with cafes, bars, restaurants and green spaces."
The council was forced to close the flyover in December 2024 after inspections revealed major safety concerns and fears of collapse. In the same month, the decision was made not to run Metro trains beneath the ailing structure, effectively slicing the Metro line in two. Demolition work started with the levelling of the nearby Computer House from October 2025 until March 2026, allowing for the later flyover works.
