Crossrail: Government announces £350m bailout for delayed rail scheme
The multi-billion pound express train line is due to open in London in autumn 2019, almost a year late
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Your support makes all the difference.The government has announced a £350m bailout to ensure there is “full momentum” behind the delayed Crossrail project.
Ministers have handed over the cash as a loan to City Hall to safeguard the multi-billion pound infrastructure project, which has been beset by delays and spiralling costs.
Announcing the bailout, rail minister Jo Johnson said: “Today, as an interim measure, we are announcing that £350m 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.”
The 73-mile express train line, which will run through east to west London, had been due to open by the end of the year.
However Crossrail bosses recently announced that the opening of the central underground section of the £15bn scheme had been pushed back to autumn 2019.
Mr Johnson said talks were underway with Transport for London (TfL) over how additional costs from the delays will be met, with London – as the primary beneficiary of Crossrail – bearing the brunt.
An independent review of Crossrail’s governance and a separate review on finance have also been commissioned.
Mr Johnson added: “When open, Crossrail will be transformative and carry up to 200 million passengers a year, delivering £42bn of investment into the UK economy.
“A further update will be provided once the discussions on the financing arrangements have concluded.”
It comes after it emerged that Crossrail’s budget was being increased by £600m due to “cost pressures”.
London mayor Sadiq Khan told Sky News: ”I was angered, disappointed and frustrated when I was told by Crossrail Ltd that the central section of Crossrail wouldn’t open in December as had been promised for a number of years now.
“It’s quite clear, as a consequence of that delay, there are additional costs to be expended.
“I’ve met with the chancellor, I’ve spoken on a couple of occasions with the secretary of state for the Department for Transport.
“As joint sponsors, we agree this amazing project has got to be finished.”
Mr Khan said the additional costs would not impact on his promise to freeze fares for the remainder of his term.
Some 200 million passengers are expected to use the service each year, which will be known as as the Elizabeth Line.
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