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A £1 billion PFI contract to build a controversial new road tunnel under the Thames, to ease some of London’s worst-congested roads, was signed today.

Transport for London said work would finally start next year on the Silvertown tunnel, which will link Greenwich and Newham and provide relief to drivers caught in daily tailbacks using the Blackwall tunnel.

But environmentalists claim the twin-bore tunnel will worsen air pollution and generate higher levels of traffic.

They have dubbed it a “four-lane motorway and environmental catastrophe” that will add to London’s toxic air, and have accused Mayor Sadiq Khan of hypocrisy after declaring a “climate emergency”.

Labour councils on both sides of the river that will be most affected by the tunnel oppose the scheme. Greenwich council’s ruling Labour group last month called for it to be paused and an expansion to the DLR considered.

However, Mr Khan argues that the tailbacks at the Blackwall tunnel, especially on its northern approach, are so bad and so polluting that action is needed.

Drivers using the Silvertown and Blackwall tunnels will have to pay a toll when it opens in 2025. The amount will be announced at a later date. Residents of adjacent boroughs are likely to receive a 50 per cent discount.

Mr Khan has pledged to include both tunnels within the ultra low emission zone that he wants to expand to the North and South Circular roads in 2021 if re-elected next May.

TfL says it will set the toll at a levy high enough to prevent an increase in traffic or carbon emissions, with any profits reinvested in public transport.

The tunnel will be built and maintained by the Riverlinx consortium. TfL will not pay any cash until the tunnel opens.

It received government backing in May 2018.

The finalising of the contract had been delayed after the losing consortium submitted a court challenge. That is continuing but the outcome will not lead to the winning consortium being replaced.