Around 95% of the levy on the five Tyne and Wear Districts is used to pay a grant to Nexus for the provision of transport services, including secured bus services, concessionary travel, the Tyne and Wear Metro and the Tyne Ferry.
The ITA retains an element of the levy to fund its own running costs, including the costs of provision of support services from the lead authority, costs of governance and administration, financing charges relating to historic debt and pension payments relating to former employees.
Tolls from the Tyne Tunnel are used to support the operation of the Tunnel and the development of the New Tyne Crossing. The Tyne Tunnel is self-financing through the tolls, i.e. it does not receive any funding from the levy.
The ITA agrees the levy and the grant to Nexus in January each year, and regularly considers reports outlining expenditure against budget throughout the year.
