Metro fare rises could soon be introduced to help fill a £5m funding gap, transport leaders have warned. Nexus, which operates the Tyne and Wear Metro, said it was facing a serious financial challenge that could make services “unsustainable” unless income increases.
Cathy Massarella, managing director of Nexus, told councillors that the operator needed to “maximise” revenue from ticket fares and other sources to balance the books. While no formal decision has been made, the next set of 2026 Metro fare proposals is currently being developed.
The warning comes as the Metro undergoes one of its most significant modernisation programmes in decades. A £362m fleet of new Swiss-built trains is being introduced, with full rollout expected by the end of 2026. Funding has also been secured for a proposed network extension to Washington and the replacement of the Metro’s ageing signalling system.
Despite these investments, Ms Massarella said the organisation’s financial position remains “difficult” due to pressures accumulated over the past five years.
“The combined challenges of the last five years have resulted in a financial structural deficit of over £5m,” she said. “While we have a plan to maintain services in the short term, this is not sustainable over the medium and long term.”
She added that Nexus was working to improve efficiency, reduce costs, and attract more passengers through its growth strategy. “International benchmarking demonstrates that Nexus has one of the lowest operational costs per train hour out of 40 Metros operating across the world. We want to build on this, with a continuous improvement focus and a commercial intent to maximise fare and non-fare revenue, whilst increasing patronage.”
Metro and Shields Ferry fares last rose in July, by an average of 4.6%. A single journey can now cost up to £4.70.
Helen Mathews, commercial director at Nexus, said the operator’s funding position remains “challenging” and that work was ongoing to identify additional sources of revenue. “To help address this, we have developed a Plan for Growth to help us generate additional revenue that includes a range of non-fare related commercial opportunities,” she said.
She added that Nexus was still finalising the 2026 Metro and Shields Ferry fare proposals. “We aim to set a balanced package of fares while helping us to meet our running costs and support the essential services that we deliver,” she said. Final fare plans will be published before being submitted to the North East Combined Authority’s Cabinet for approval.
