Tory bid to block law on funding for Crossrail

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David Cameron led opposition to a new law which would allow £3.5 billion to be raised through a levy on businesses in the capital to help fund the £16 billion cross-London link.

MPs were due to debate the Business Rate Supplements Bill this afternoon.

But the Tories tabled a motion arguing that the legislation should not be given a second reading - which would effectively kill it off.

They instead want a Crossrail specific law which would limit the levy for use on the link, due to open in 2017. They are only against councils across the country being able to bring in levies.

But the Government insisted it had no plans to change the legislation and Transport minister Lord Adonis accused the Conservatives of endangering the project. He said: "Crossrail would not go ahead without business rates supplements which have been agreed with the Mayor of London and are vital to the project."

The 2p extra on business rates to fund Crossrail would be charged from next year. Shadow transport secretary Theresa Villiers said: "Our position on Labour's flawed and unpopular proposals for a raft of new local taxes does not compromise our support for Crossrail."