Consortium voices concerns over Crossrail £billions
Posted: 5th August 2008 | From Railnews Aug 2008 print edition 1 Comment
“This landmark project is of major significance to London and the whole country."
SERIOUS questions have been raised over how exactly funding will be raised for the £16 billion London Crossrail project, following the granting of Royal Assent for construction work to start.
The British Retail Consortium is calling on the Government to provide more information that would clarify the contribution of businesses to the huge rail project.
The Government has indicated that the costs of the project will be met by roughly equal contributions from three sources – taxpayers, fare-payers and the London business community.
The BRC adds that it understands the City of London and large developers will contribute a portion of businesses share.
It appears that the majority of this contribution will come from a new Business Rate Supplement, which will be charged on all businesses in London with a rateable value of over £50,000 – but businesses say they are being denied the facts, because the BRS Bill is not likely to be introduced before autumn at the earliest.
The consortium wants to know what proportion of the private sector contribution has already been secured from the City and large developers, and how the shortfall will be made up. It also wants to know for how long the business rate supplement will have to be paid.
BRC director general Stephen Robertson said: “This is a much needed and long overdue project. But we have serious concerns about the continued absence of detailed information on how much of the costs businesses will have to pay.”
According to one report, the Department for Transport will be putting up £5.1 billion of taxpayers’ money, while £7.7 billion is due from the Greater London Authority and Transport for London.
Some £3.5 billion is due from the business rate supplement, £300 million from developers and £300 million from a new statutory planning charge.
But there are concerns that money diverted to Crossrail will mean less money spent on the London Tube system.
Meanwhile, Royal Assent for the Bill was given on Tuesday 22 July with a visit to Liverpool Street station by transport secretary Ruth Kelly and Mayor of London Boris Johnson.
The new line will run from Maidenhead and Heath-row Airport in the west to Liverpool Street, Whitechapel, Canary Wharf, Shenfield and Abbey Wood in the east.
The link will tunnel under central London with new stations at Paddington, Bond Street, Tottenham Court Road and Farringdon. Main construction work is set to begin in 2010, with opening in 2017.
Services will be provided by a new and dedicated fleet of some 600 air-conditioned carriages.
Ms Kelly said: “This landmark project is of major significance to London and the whole country. It will generate jobs and economic growth, help revitalise some of our most deprived areas and deliver major improvements for the travelling public.”
The British Retail Consortium is calling on the Government to provide more information that would clarify the contribution of businesses to the huge rail project.
The Government has indicated that the costs of the project will be met by roughly equal contributions from three sources – taxpayers, fare-payers and the London business community.
The BRC adds that it understands the City of London and large developers will contribute a portion of businesses share.
It appears that the majority of this contribution will come from a new Business Rate Supplement, which will be charged on all businesses in London with a rateable value of over £50,000 – but businesses say they are being denied the facts, because the BRS Bill is not likely to be introduced before autumn at the earliest.
The consortium wants to know what proportion of the private sector contribution has already been secured from the City and large developers, and how the shortfall will be made up. It also wants to know for how long the business rate supplement will have to be paid.
BRC director general Stephen Robertson said: “This is a much needed and long overdue project. But we have serious concerns about the continued absence of detailed information on how much of the costs businesses will have to pay.”
According to one report, the Department for Transport will be putting up £5.1 billion of taxpayers’ money, while £7.7 billion is due from the Greater London Authority and Transport for London.
Some £3.5 billion is due from the business rate supplement, £300 million from developers and £300 million from a new statutory planning charge.
But there are concerns that money diverted to Crossrail will mean less money spent on the London Tube system.
Meanwhile, Royal Assent for the Bill was given on Tuesday 22 July with a visit to Liverpool Street station by transport secretary Ruth Kelly and Mayor of London Boris Johnson.
The new line will run from Maidenhead and Heath-row Airport in the west to Liverpool Street, Whitechapel, Canary Wharf, Shenfield and Abbey Wood in the east.
The link will tunnel under central London with new stations at Paddington, Bond Street, Tottenham Court Road and Farringdon. Main construction work is set to begin in 2010, with opening in 2017.
Services will be provided by a new and dedicated fleet of some 600 air-conditioned carriages.
Ms Kelly said: “This landmark project is of major significance to London and the whole country. It will generate jobs and economic growth, help revitalise some of our most deprived areas and deliver major improvements for the travelling public.”
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