£1bn shortfall brings Tube upgrade to halt

Plans to ease congestion, cool the tunnels in warm weather and install lifts and escalators may have to be shelved to allow Transport for London to focus on essential maintenance.

The cash crisis also means the refurbishment of up to 75 stations could be delayed by seven years.

The report by the London Assembly Transport Committee warns of a "funding crisis" due to increasing costs and the collapse of maintenance firm Metronet.

It was originally estimated that work by Tube Lines on the Jubilee, Piccadilly and Northern lines would cost £4.1billion.

However rising costs have meant this is now likely to be at least £1billion more, putting at risk plans for a signalling upgrade on the overcrowded Piccadilly line intended to provide 25 per cent more capacity.

In the report, outgoing London Underground boss Tim O'Toole describes completing the work as a "high-wire act".

The document says: "The costs of work have risen dramatically and there is a looming funding crisis which could jeopardise the long-promised improvements.

"There is a consensus that it would be difficult and damaging to reduce the core programme of maintenance and work to increase the network's capacity. It is the peripheral projects that are initially at risk - tunnel cooling, congestion relief and schemes to provide step-free access."

In addition the work being carried out by Metronet on two thirds of the network has stalled after it went into administration and was transferred to TfL.

It means half of the 150 stations due for an upgrade by next year will not be completed until 2017. These include stations on the Bakerloo, Circle and District lines.

The report states: "Metronet was spectacularly inefficient. Metronet's legacy is apparent in a station refurbishment programme now years behind schedule."

TfL has already been told to find £2.4billion worth of efficiency savings. Boris Johnson has called on the Government for additional funding but it has refused to give any more than the previously agreed £39 billion 10-year settlement.

Chair of the Transport Committee, Val Shawcross AM, said: "Our report provides a snapshot of a complex situation that will shape London Underground for many years to come. Any delayed or cancelled projects will have a real impact on people.

"I urge Transport for London to take our recommendations about reviewing its plan and publishing progress reports seriously - this information should be in the public domain. Maintaining and upgrading the Tube is absolutely vital and Londoners have a right to know how it is progressing."

A spokesman for the Department for Transport said: "We have already agreed a generous long-term settlement with TfL, providing more than £40billion for transport over the next 10 years.

"This took into account the possibility that the costs for delivering Tube improvements could be higher than originally envisaged, as well as providing funding for Crossrail. It is now for TfL to manage this to deliver the high-quality transport its users expect."

London Underground Managing Director Tim O'Toole said: "We welcome the Assembly's report. In particular, we welcome the Assembly's recognition that, The programme of reliability and capacity enhancements are fundamental to meeting London's long-term transport requirements. They must go ahead as scheduled.'

"We also note the Assembly's call on Government, to honour its commitment to fund the renewal of the London Underground by meeting legitimate cost increases on Tube Lines programme.'"