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25 February 2010
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From RAILNEWS
Crossrail poses ‘unfair burden’ on London businesses
Posted: 24th February 2010 | No Comments
Future Crossrail entrance at Paddington
BUSINESSES in Greater London are paying too much towards Crossrail, according to a new report from the London Assembly Transport Committee.
The Committee ‘strongly supports’ the £16 billion scheme, but questions why London is contributing more than half the funding for a project that could generate £22 billion for Government over ten years.
In its report, ‘Light at the end of the tunnel’, the Committee is also highly critical of Crossrail Ltd’s dealings with displaced businesses and residents whose premises are compulsorarily purchased to allow construction to go ahead.
It is particularly concerned about the proportion of costs which London will have to pay, saying: ‘We heard one estimate that Crossrail will generate around £22 billion over ten years for central Government in extra tax, increased property levies and fare profits. In this light, central Government’s £8 billion contribution seems very favourable.
The Committee ‘strongly supports’ the £16 billion scheme, but questions why London is contributing more than half the funding for a project that could generate £22 billion for Government over ten years.
In its report, ‘Light at the end of the tunnel’, the Committee is also highly critical of Crossrail Ltd’s dealings with displaced businesses and residents whose premises are compulsorarily purchased to allow construction to go ahead.
It is particularly concerned about the proportion of costs which London will have to pay, saying: ‘We heard one estimate that Crossrail will generate around £22 billion over ten years for central Government in extra tax, increased property levies and fare profits. In this light, central Government’s £8 billion contribution seems very favourable.
‘The Committee believes that London is providing more than its fair share of the funding. Why, for example, are the areas outside the GLA boundary which will benefit considerably from Crossrail not contributing to its cost? Similarly, the heads of terms agreed between the Government and Transport for London do little to reassure us that the risks of significant cost over-runs will not fall disproportionately on the capital.’
Crossrail chief executive Rob Holden responded: “We welcome the Committee's cross-party support for Crossrail and its recognition of the project's long-term economic benefits to the capital and the whole of the UK. We note the Committee's recommendations and look forward to continuing our engagement with it and through the life of the project.”
Crossrail chief executive Rob Holden responded: “We welcome the Committee's cross-party support for Crossrail and its recognition of the project's long-term economic benefits to the capital and the whole of the UK. We note the Committee's recommendations and look forward to continuing our engagement with it and through the life of the project.”
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