London taxpayers foot unfair bill for Crossrail, says Assembly

23 Feb 10
The financing of the £16bn Crossrail project is over-reliant on the contribution of the capital’s taxpayers, London Assembly members have claimed
By Vivienne Russell

23 February 2010

The financing of the £16bn Crossrail project is over-reliant on the contribution of the capital’s taxpayers, London Assembly members have claimed.

In a report published today, the Assembly’s Transport Committee questions why London is contributing more than half of the funding for a project that is expected to generate £22bn for central government in increased tax take and fare profits.

The committee highlights that a fifth of the Crossrail stations  – 8 out of 37 – are located outside Greater London yet only London businesses are contributing to Crossrail through business rates.

It recommends that, should any additional funding be required, the Crossrail levy be extended to relevant areas outside the capital.

The report, Light at the end of the tunnel, is also critical of Crossrail Ltd’s ‘poor handling’ of the compulsory purchase procedure in Soho. There are a range of disputes relating to notice periods, the amount of compensation offered and support with relocation.

Committee chair Caroline Pidgeon said: ‘Disruption and displacement are inevitable consequences of building a new rail link through central London, but Crossrail’s initial dealings with displaced businesses and residents have been very disappointing. We hope they have learned lessons from these early experiences.’

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