Chancellor: Crossrail essential for prosperity of the city

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Alistair Darling will tell the City that the Government will not back away from the £16billion east-west rail link, despite heavy pressure on public finances.

He will hail Crossrail as an example of the sort of investment on infrastructure that taxpayers should keep making during a recession to prepare for the future recovery.

He will say: "I can also see those of you who have - rightly - pressed the case for the importance of Crossrail for the prosperity of this city and our country. And work is under way."

On Heathrow, Mr Darling will say the Government is determined to press ahead with expansion, including the third runway.

Although ministers are not offering extra financial support for the expansion, the Government is committed to helping by streamlining the planning system.