'Demolition diversions cut my revenue by 80%'

A business owner has said street closures linked to a flyover demolition nearly forced his firm to permanently shut.

Phil Davies, who runs Downcast Studios next to Park Lane roundabout in Gateshead, said his company had been left as "collateral damage" following closures linked to the demolition of the Gateshead Flyover which suddenly shut in December 2024 due to safety concerns.

Residents who were offered council compensation for disruption caused by the structure's flattening also said they felt the authority had let them down.

The council said it did not offer compensation to businesses affected by roadworks and the demolition had been carried out in a "responsible fashion".

Davies said revenue at his business, which consists of a live music venue, rehearsal space and a restaurant, had fallen by 80% since the works began- roughly worth about £30,000 -due to the diversions that had been put in place.

"We used to have about six to 10 bands [rehearsing] a day," he said. "We've got about one to two now."

The flyover's demolition was completed last month but some footpath closures remain in place.

Davies also said he had closed the site's restaurant due to a lack of footfall and dust caused by the demolition.

"If you're coming for a burger at lunch time, if you get 30 minutes to an hour [for lunch] – you're not going to walk 30 minutes here," he said.

Davies said he had sought compensation from the council for loss of earnings but had been told this would not be possible.

"I feel like we're collateral damage for the whole thing and [have been] forgotten about," he said. "We're being forced to absorb the costs of Gateshead Council."

He also said he was looking into claiming compensation from his insurers but it was still unclear whether this would be possible.

The authority said it was "regrettable" that access to Davies's business had been made more difficult during the flyover demolition but said it had signposted alternative access.

It said it did not offer compensation to businesses affected by roadworks.

The council also said it plannedto restore the "shortest" pedestrian route from the town centre to Downcast Studios on Friday.

In response to a Freedom of Information (FOI) request, Gateshead Council said it had offered compensation to 52 households disrupted by the flyover works. It also said it had moved 12 households into alternative accommodation during part of the demolition.

Bernie Miles was one of the residents who lived near the Park Lane roundabout who was given the choice of £150 a week during the works that centred around the roundabout, or the chance to move to a hotel.

Miles said she declined to move to a hotel due to her husband's mobility issues and instead agreed to the cashoffer.

The work lasted 33 days, she said, but ultimately, she was only offered compensation for 28 days – totalling £600.

"It's not about the money," she said. "It's about the respect... I get a clear message from them saying that's all you're worth."

Neighbour Sheila Blatchford, who was also offered the money, said she felt like the deal was not good enough.

Like Miles, she said she was forced to keep her windows closed during the works at the height of summer and that dust was still getting inside regardless.

"I had the hoover out on an almost continuous basis," she said.

Nevertheless Blatchford said the view outside her window had massively improved since the flyover was removed.

"The view out of the window is tonnes better than it was except for the fact that they all need washing now," she said.

Gateshead Council said the offer to move to a hotel was always open to residents affected by the Park Lane roundabout works - even after the demolition had begun.

It said it held regular drop-in sessions during the roundabout works and that complaints were minimal.

A spokesperson said the £150 a week offer was written into its emergency rehousing expenses policy. They said the council believed that the cash offer, alongside the hotel offer, was a "generous package" to residents.

The council also said demolition contractors used water jets throughout to suppress dust.

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