The Mayor of London, Transport for London (TfL), the Department for Transport (DfT) and HM Treasury have confirmed an agreed
Funding and financing for the final phase of the Crossrail project has been agreed by the Mayor of London, Transport for London (TfL), the Department for Transport (DfT) and HM Treasury, so work on the railway can continue at pace.
Crossrail announced in August that it expected the Elizabeth line to open through central London in the first half of 2022 and that it would require funding beyond the agreed funding envelope.
The shortfall will initially be covered by the Greater London Authority (GLA) borrowing up to £825 million from the DfT, which will be given by GLA to TfL as a grant. The GLA will repay this loan from Business Rate Supplement (BRS) and Mayoral Community Infrastructure Levy (MCIL) revenues.
Crossrail is continuing to work hard to reduce its funding shortfall, and TfL is ensuring that further independent analysis of costs is carried out.
The Mayor of London, 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. This is another example of London supporting the country way over and above the help we get from this government. 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.”
Andy Byford, London’s Transport Commissioner, said: “I have been very clear that it is my priority to get the railway open as soon as possible and all those working on the Crossrail project are focused on that too. Confirming this financing is an essential step in ensuring the team can fully concentrate on safely delivering the Elizabeth line, which is so vital for boosting rail capacity and supporting the economy.”
Secretary of State for Transport Grant Shapps said: “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. TfL is ensuring that further independent analysis of costs are carried out.
Governance of Crossrail transferred directly to TfL in October, helping to simplify responsibilities and ensure decision making is seamless and fully aligned at this crucial stage. A special purpose committee of the TfL Board, the Elizabeth Line Committee, provides high-level oversight of the project, the first meeting took place last week. The project remains a jointly sponsored by TfL and the DfT and an independent DfT representative will attend the committee meetings.