Morgan Sindall’s bumper project to build six stations on the Northumberland Line has soared in cost to nearly £300m.
The project, to get the Northumberland rail service up and running again, was initially costed at £166m, according to a funding statement drawn up by Northumberland County Council.
Morgan Sindall signed the construction contract in July 2023 to build six new stations at Ashington, Bedlington, Blyth Bebside, Newsham, Seaton Delaval and Northumberland Park, plus miles of re-laid track, three new footbridges and a cycle bridge over the A189.
Initially, Northumberland County Council committed £20.5m of funding to the project, with the Department for Transport contributing £139.8m in total.
But the council now anticipates that the cost has reached £298.5m – with work still to come. Construction News asked Morgan Sindall and Northumberland County Council what caused the price increases, but had not received a response by the time of publication.
But Chronicle Live reported that the cost inflation was caused by additional ground remediation works, inflation’s impact on material and labour costs, and a significant rise in steel prices caused by the Russian invasion of Ukraine.
The council added that recent analysis showed the line “remains a value for money investment”.
“Latest analysis […] suggests that for every £1 invested in the line, more than £1.50 is expected to be generated in wider benefits,” it said in a statement.
The line revamp, which got the green light in June 2022, is one of many that was closed by the Beeching cuts in 1965. But it was reopened under a wider plan to revive local rail services across the UK, known as the ‘Restoring Your Railway’ fund.
The fund has also been used to reopen a section of track in Devon, connecting Exeter with Okehampton. That opened in November in 2021.
At least seven more schemes are underway thanks to the fund.
