Crossrail gets more cash, Crossrail 2 ‘mothballed’
FOLLOWING FURTHER delays, primarily down to the coronavirus pandemic, the Mayor of London, Transport for London (Tfl), the Department for Transport (DFT) and HM Treasury have agreed to an up to £825m loan agreement to fund the final phase of the Crossrail project. The deal involves the Greater London Authority (GLA) borrowing the money from the DFT and then passing it on to TFL as a grant. The money will be repaid by the GLA from Business Rate Supplement (BRS) and Mayoral Community Infrastructure Levy (MCIL) revenues.
In the meantime, the project is looking to find additional savings and to reduce overall costs, although at this late stage that might prove difficult. It is also working hard to complete the remaining work on the central core, including a ramping up of more intense testing, which is already underway.
Commenting on the latest developments, Mayor Sadiq Khan said: “Securing this financing package enables us to press full steam ahead with getting the central section of the Elizabeth Line open as soon as possible. The government have insisted London must pay the shortfall – despite the overwhelming majority of the tax income that will result from Crossrail going to the Treasury. I do not want this project to be stalled so it is vital that we dig deep to get the railway up and running. I will continue to monitor progress closely and do everything I can to minimise costs – helping ensure London and beyond can enjoy its many benefits sooner rather than later.”
Secretary of State for Transport Grant Shapps added: “The government remains committed to the rapid completion of the project, in a way that is fair to UK taxpayers, and has committed to financing the completion of Crossrail. However, London – as the primary beneficiary – must ultimately bear any additional costs. Crossrail Ltd is committed to reducing its funding shortfall and will take all necessary steps to complete the project without requiring further additional funding.”
Previously, in August 2020, Crossrail said that it hoped to have the central core open to passengers in the first half of 2022. The governance of Crossrail was transferred to TFL last October and this has simplified responsibilities to hopefully ensure decision making is seamless and fully aligned. A new special purpose committee of the TFL Board, the Elizabeth Line Committee, has been established to provide high-level oversight.
The much anticipated £41bn Crossrail 2 project, which was to connect south west and north east London in the 2030s, has been shelved for now in order to save money in the short term. As part of the Chancellor’s spending review it was agreed TFL would not fund the project any further. But to retain the possibility of it restarting in the future, the Mayor’s office is planning to safeguard the route from other development. The Treasury has added that the decision would also “free up investment” that could be used to improving public transport elsewhere in the UK.