- My Account
- Logout
- Register
- Login
Boris in £3bn battle to rescue Tube upgrade
Related Articles
30 September 2008
Mayor Boris Johnson is demanding the Government provides up to £3 billion of extra funding for the work.
Without it, the project - which includes new tracks, signals and trains - is at risk. The Government has refused to provide the funds, saying that Transport for London should foot the bill.
The Mayor has accused the Government of creating the financial shortfall by imposing the public-private partnership, under which large sections of the Tube were hived off to the private sector on 30-year leases. Mr Johnson says this means the Government is now under a "moral" obligation to pay the extra costs involved resulting from their actions.
He said it was "desperately necessary" for both the London and national economy that the Tube upgrade is completed.
The current cash problems result from last year's collapse of Tube maintenance firm Metronet amid £2billion debt. Metronet has since been taken back under public control through TfL.
Now Tube Lines, the second and remaining private sector consortium, needs at least £1.4 billion in extra funding to complete its scheduled programme of improvements.
Mr Johnson has written to Chancellor Alistair Darling setting out the need for the extra funding. Senior Government sources have ruled out the Chancellor agreeing to any more money.
Hesaid: "The Government is morally responsible for the PPP which it imposed on London and which does nothing to protect fare payers and taxpayers.
"We have done our bit [to raise cash]. We have put up fares by RPI plus one per cent. We have asked Londoners to take the pain and the Government should do its bit."
The Mayor's spokeswoman added: "The prediction that more funding is required by Tube Lines were forecast from the beginning of these contracts, yet roundly ignored by the Government."
Former mayor Ken Livingstone failed in two High Court attempts to prevent the PPP, devised by Gordon Brown as Chancellor, from going ahead.
The Government has already ruled out using funds allocated to the £16 billion Crossrail project, despite transport experts advising that the Tube network upgrade is a higher priority.
Comments
Top stories in News
Top stories in News
-
I'm joining Chelsea, claims Eden Hazard
-
TV Baftas - in pictures
-
British woman Lindsay Sandiford facing Bali death penalty for drug smuggling is mother of violent robber who carried out raids in London
-
EXCLUSIVE: 'I'll keep going until Blair's taken down', says David Lawley-Wakelin, intruder who burst into Leveson Inquiry -
News pictures of the day
-
British housewife facing FIRING SQUAD over Bali drugs smuggling charge was 'neighbour from hell' -
They attacked "like a pack" raining fists on a defenceless legal secretary. Yesterday they walked free from court. No wonder their victim says she has been denied justice.
-
Mayor demands report from Transport for London into Jubilee Line nightmare that left hundreds of commuters trapped for hours underground
-
Video: Intruder bursts into Leveson Inquiry to brand Tony Blair a war criminal -
Baroness Warsi calls in Lords watchdog to clear name over expenses
The O2
Check out the cool stuff happening under our tent such as the hottest gigs, comedy, sport, films, clubs, bars, restaurants and much more.
Can you imagine a career in teaching?
Be inspired to teach - let real teachers show you how rewarding the job can be.
Playing a game-changing role during the Games
Cisco is providing the solutions for London 2012's complex IT needs.
Win a Silverstone track day with Zantac 75
Feel the burn of a different kind - 20 Silverstone motoring experiences to be won
Reader Offers email A fantastic selection of
offers, giveaways and
promotions.
Drum'n'bass pioneer Goldie creates ‘rose’ portrait of the Queen
Chelsea close in on £62m swoop for Eden Hazard and Hulk
Video: South east London factory fire - 'Air raid siren' wakes Greenwich residents
The London best: Yoga classes
Man v Woman v Food: the big burger challenge