Tyne and Wear Metro services are set to avoid cuts next year despite the threat posed by enormous energy bills – but are in a “precarious” spot.
Transport chiefs have agreed plans to plug a gap of more than £10m in Metro operator Nexus’ finances next year without needing to slash train services. But there remain worries about the future funding of the network, with its electricity costs having shot up dramatically amid the global energy crisis and expected to remain high for years to come.
Nexus is predicting a £10.6m budget shortfall in 2023/24, which will be covered by increased payments from local councils in Tyne and Wear and by spending £8m of its cash reserves. But with critical energy bill relief from the Government due to expire soon and major pressures as a result high inflation levels continuing, councillors were told on Tuesday that using Nexus’ limited reserves to solve the crisis was “not a sustainable position”.
