There were now several separate private railways, and there was a movement to make them into a single, incorporated company. The spur was passenger duty imposed on private railways, and also concern about promotion of a possible competing railway. They connected two parts of the group together by cutting through Prospect Hill in the year 1851 to enable the adoption of locomotive power; the new cut formed considerably gentler gradients. With other improvements the expenditure was about £130,000. The Act incorporating the Blyth and Tyne Railway received the Royal Assent on 30 June 1852, capital £150,000. The line controlled by the new company totalled 13 miles, consisting of the main line from Blyth to the Hayhole on the Tyne (12 miles), a short branch to the York. Newcastle & Berwick Railway at Percy Main, the connection with the former Newcastle & North Shields Railway, and several short branches to shipping places on the Tyne. The new Company came into existence on 1 January 1853.