Afternoon:
8°c
Crossrail at last
Evening Standard comment3 Oct 2007
The stand-off between the Government and business about how to pay for Crossrail has, it seems, finally been concluded.
The City has bridged the reported £1 billion shortfall in funding. A meeting of the City of London Corporation's court of common council agreed on a contribution that would amount to about £300 million from the City.
It follows individual voluntary contributions from BAA, owner of Heathrow, and Canary Wharf. The remaining tranche will be provided from future fares. It now looks as if the Prime Minister will finally be able to announce that the 20-year wait to authorise Crossrail is over.
We must all be grateful for the Corporation's decision but it was invidious for the Government to oblige the City and individual companies to shoulder so much of the cost of an infrastructure project which will benefit passengers throughout the Underground system and businesses all along its route.
If there is a last-minute hitch in funding, there is another possibility. As Christopher Fildes pointed out in this paper, another source would be the £400 million which is given to the London Development Agency from the Treasury and is effectively in the Mayor's gift. That is an option to hold in reserve.
