Written Ministerial Statement
On 31 August 2018, Crossrail Limited, a wholly-owned subsidiary of Transport for London (TfL), announced a delay to the planned opening of the Elizabeth Line.
Discussions between TfL and government are underway as to how any additional funding will be provided, with London - as the primary beneficiary of Crossrail – bearing any additional costs via a financing arrangement.
TfL and the Department for Transport have commissioned an independent review of Crossrail’s governance and a separate review on Crossrail’s finance and commercial position.
Today (26 October 2018), as an interim measure, we are announcing that £350 million of short term repayable financing will be made available to the Mayor for the year 2018/19. This will ensure that full momentum is maintained behind Crossrail.
This project is already delivering benefits for the whole of the UK through its cross-country supply chain and its UK built train fleet. When open, Crossrail will be transformative and carry up to 200 million passengers a year, delivering £42 billion of investment into the UK economy.
A further update will be provided once the discussions on the financing arrangements have concluded.
TfL statement
London’s Transport Commissioner, Mike Brown, said: “The confirmation of an interim financing package between the Government and the Mayor of London will enable Crossrail Ltd to continue its construction work and vital testing at pace to open the Elizabeth line to passengers as quickly as possible. The funding will go towards Crossrail Ltd completing the final fit out of the tunnels, work on stations and the extensive safety and reliability testing needed for the new systems.
We have commissioned independent reviews into Crossrail Ltd’s governance and financing to ensure its projections are robust. These reviews are being carried out by KPMG and once this work is finalised a full financing agreement will be developed by the Government and Mayor of London. Once opened the Elizabeth line will transform travel across London, boosting the economy by billions of pounds and supporting thousands of new jobs and homes in London and the South East.”
Mayor of London statement
The Mayor of London, Sadiq Khan, said: “This agreement is the result of positive discussions between my team, the Treasury and the Department for Transport and will allow Crossrail Ltd to continue their construction work and the testing process.
“An independent review into Crossrail Ltd’s commercial practices, cost projections and governance is already well underway, and that will help us understand the exact implications of the project overrunning for both project sponsors - Transport for London and the Department for Transport.
“Some very challenging work remains to be completed, but we will continue to work alongside the Government to deliver this important piece of infrastructure, and we will continue to keep the public informed of our progress towards its completion. When open, the Elizabeth Line will be a world-class railway that makes London proud.”