New Funding for Thames Crossing: UK Government Commits Additional £590M
The Lower Thames Crossing just got a big boost. On June 16, 2025, the UK government promised an extra £590 million to help build it. That’s a huge step forward for what could become the longest road tunnel in the country. Many of us know how bad traffic gets at the Dartford Crossing. This new project is meant to fix that by giving drivers another way to cross the Thames between Kent and Essex.
We’ve been hearing about this tunnel for years. It’s been planned, delayed, and debated. Now, it finally looks like things are moving. With this new funding, the construction may start as early as 2026. The government hopes it will ease traffic, boost trade, and create thousands of jobs.
But there’s more to this story. What will it cost in total? Who’s paying? And how will it affect the environment? In this article, we’ll explore all sides of what the project is, why it matters, and what comes next.
What is the Lower Thames Crossing?
The Lower Thames Crossing will span 14 miles and include a 2.6-mile twin tunnel beneath the Thames, built to full motorway standards for smoother travel. Designed to take pressure off Dartford, this could become the UK’s longest road tunnel.
The project won planning approval in March 2025, after years of delays, environmental checks, and public debate. So far, £1.2 billion has been poured into planning, surveys, and early works.
Breakdown of the £590 Million Boost
This new sum is part of the structures fund within Chancellor Reeves’ £725 billion, 10‑year infrastructure plan. The fund will finance upgrades to bridges, tunnels, and flyovers, while this slice goes to the Thames project.
Chancellor Rachel Reeves called it a “turning point” for UK infrastructure. She said the move supports jobs and better trade links for regions.
Transport Secretary Heidi Alexander called the extra money “critical” for moving freight faster from ports to inland areas.
Why Now? Government Goals and Vision
This investment is central to the government’s aim to deliver visible improvements ahead of 2029. The structures fund shows a shift in mass public investment backed by private capital, using the RAB (Regulated Asset Base) model.
Under RAB, private investors would cover around £6.3 billion of the total cost of about £10 billion, and recoup their returns via tolls. This helps spread risk and keep public cash flowing to more projects.
Economic Impact & Industry View
We expect this tunnel to cut delays at Dartford, easing the movement of freight and boosting trade across regions.
Logistics UK described it as a step in the right direction. They hope the government will confirm full funding soon so investment can continue.
The Road Haulage Association noted that restricting bridge weights has slowed logistics. The structure fund will help fix this by cutting fuel use, travel time, and emissions.
Thames Crossing: Cost, Funding, and Finance Plan
The total cost is expected to land between £9.2 and £10.2 billion, including the tunnel, roads, and local junctions.
Of this, £1.2 billion has already been spent. Now, the public purse has chipped in £590 million more. Private finance under RAB will deliver £6.3 billion, with the remainder covered by additional public funding.
Some critics say costs may grow under private schemes. National Highways says toll levels will be fair and temperate. But debates around funding transparency continue.
Environmental & Community Effects
The tunnel avoids marine wetlands, yet roadsides may affect woodlands, fields, and animal habitats.
Plans include 260 hectares of new trees, wildlife corridors, and green bridges to reconnect habitats. Some images show landscapes hiding most of the road, with 80% out of view.
Groups like the Woodland Trust and Essex Wildlife Trust question whether new planting will fully make up for losses.
Timeline & What’s Next
- March 2025: Planning approved.
- June 2025: £590 million announced.
- 2026: Construction may start.
- 2032: Targeted completion date
No legal challenges were brought before planning deadlines, thanks in part to recent reforms in planning law.
Now, the government will share more details on how funds are spent and move forward with private funding plans.
Final Take
This funding marks a leap forward. The Lower Thames Crossing moves from idea to action. It shows how the UK is combining public spending with private investment to fast-track key infrastructure.
We’ll be watching the project closely. Will future budgets meet the full cost? Can environmental design measures truly offset harm? And will the RAB model deliver fair returns without hurting toll-payers?
This tunnel could reshape freight routes, boost regional economies, and even set a blueprint for future road projects. But a lot rests on careful delivery, green protections, and finance that serves the public.
Frequently Asked Questions (FAQs)
The UK government and private investors will pay for the Lower Thames Crossing. The public pays some through taxes, and private firms help with long-term funding.
The total cost of the new Thames Crossing is expected to be between £9 billion and £10 billion. This includes the tunnel and nearby roads.
No, it will likely have a toll. Drivers may have to pay to use it, like at Dartford, to help recover the cost of building and running it.
A new road tunnel under the River Thames will join Kent and Essex, connecting key routes such as the M25, A2, and A13 to improve travel flow.
Disclaimer:
This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.