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Tory bid to block law on funding for Crossrail
Nicholas Cecil, Chief Political Correspondent12 Jan 2009
CROSSRAIL today faced being delayed after the Conservatives sought to block vital legislation to fund the scheme.
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."
Reader views (12)
When major new rail/tram links were built in Paris, they were mainly funded by taxes on major businesses in the city.
These companies benefit hugely from good transport links, so they help fund the project.
The same rules should apply in London, but as usual people want something for nothing. Suggesting that the rail operators should fund Crossrail is nonsense, unless you want unaffordable fares as they attempt to recoup their investment.
This country is self-destructive when it comes to the issue of public transport - just look at how many comments complain about possible improvements.
- James, London,UK, 13/01/2009 03:11
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The cross-river tram and DLR extension projects are being cancelled because all the money for transport is being sucked in the black-hole of Crossrail.
And did you know that the more money that's spent on projects like Crossrail a corresponding percentage is given to Scotland! And who's getting a new tram system? That's right, Edinburgh, where, by an amazing coincidence, our beloved Chancellor happens to be an MP.
- John, London SW, 12/01/2009 23:01
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You can't "fix" existing rail routes without closing them half the time.
Alternative routes were closed by Beeching, etc.
In any case, modernising an old route is more expensive than building a completely new one.
So more modern new routes have to be built.
- Alex Mckenna, Manchester, 12/01/2009 22:35
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Crossrail is no longer needed now bankers at the City and Canary Wharf have nearly all been laid off. Boris should ditch this Ken Livingstone vanity project and put the money into more express roads around London connecting the suburbs.
- Hugh, London, 12/01/2009 21:01
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Perfectly sensible way to raise money for a much-needed project, and if it works in London, why not use the same powers elsewhere? Business benefits from investment wherever it is in the country, after all, so why shouldn't they contribute?
Also, why on earth do so many people seem to use the state of the Tube as an excuse *not* to invest money building things that were needed ten years ago? Frankly baffling, unless these are people who will never, ever see the good in anything.
- Tom, London, UK, 12/01/2009 20:07
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The Conservative's transport policies are becoming very clear. First of all Boris cancels the much needed Cross River tram. Now Dave is trying to kill off Crossrail.
The message is very clear, if you value public transport, don't vote for Dave or Boris.
- Andrew W1, London, 12/01/2009 19:41
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So another fiasco like the olympics. If anybody should fund it it should be the train operators, not business without a direct link to transport. The country is in a financial mess as it is without putting more small business to the wall. Certanly there sould be no more levies on those that live the GLA and certanly never any of those that do not have any local authority on a Crossrail route.
If Crossrail cannot be built for the current available funds then there are three options Scrap it, delay it or give the prroject to am EU orgainsation that commits to build to the available funds.
I would like to see Network Rail demonstrate the savings they can make on this project to solve thios problem, if thay can, if not send the project to another organisation in the EU.
- Off The Rails, London, England, 12/01/2009 18:44
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There are different priorities now. Anyhow the existing infrastructure has to be fixed before we start new projects I think.
- Jacqueline, Hampstead, London, 12/01/2009 18:38
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Can we really afford Crossrail ??? We'd probably be better off moving Stratford International a bit closer to Sratford Station which before all the building work began you need binoculars to see.
- John.W, east kent, 12/01/2009 18:29
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They should first invest and fix what we already have, before folly expansion into fring operations and fancy new projects! I am tired of the central trains, buses and tubes not working properly. Bolting on more lines is going to make London Transport into an even bigger joke I think!
- Pat, London, N1, 12/01/2009 16:53
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So Labour refuse to ringfence the tax revenue raised for the Crossrail by the supplement. Why? Oh was this going to be just another stealth tax and the next government/generation can worry about the huge hole in the deficit....? A bankrupt government presiding over a bankrupt economy.
- Mark, London, 12/01/2009 16:35
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The Tories are obviously against Crossrail, and trying to mask their opposition. Crossrail has to be built if traffic across London is not to come to a complete standstill. The Tories are playing a very silly game, after all of the huge efforts that have been put in to making Crossrail a reality.
- Phil Jones, London UK, 12/01/2009 14:40
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