Over-budget, delayed Crossrail gets another £825m lifeline

London’s delayed and over-budget Crossrail project has been given another £825m in government funding, Transport Secretary Grant Shapps said on Tuesday.

Crossrail, which will run west-east from Berkshire to Essex via central London and with connections to Heathrow airport, was originally due to open in December 2018 with a budget of £15.9bn set in 2007.

However, cost overruns and delays have turned the project into an embarrassment for central government and led to the loss of millions in potential revenue for Transport for London (TfL), the capital’s public transport operator.

TfL and the government had previously agreed a funding package totalling £17.8bn.

The operator's finances have been hammered during the pandemic as restrictions on travel have deterred people from using public transport. It was banking on the extra revenue from Crossrail to fund expansion of its infrastructure.

Crossrail said in August said that the full opening of the railway, to be called the Elizabeth line, was now not expected until the first half of 2022.

The issue has also exposed political faultlines between the Conservative government and London mayor Sadiq Khan, a member of the opposition Labour Party.

Conservative government ministers have tried to pin TfL’s funding problems on Khan, who faces a mayoral election next May. He was forced earlier this year to take on extra debt at TfL in exchange for extra Treasury cash to keep London’s transport network operating.

On Tuesday Khan hit out at the terms of the loan, saying the government “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.”