Discussions are underway for a second Crossrail project, connecting the congested southwest of London to the more deprived northeast. But Crossrail 2 cannot simply copy the funding successes of its big brother.
Crossrail is steaming ahead. With a new Network Rail Director appointed earlier this month, and over 9km of tunnels now excavated for the capital's flagship transport scheme, the time is ripe to consider what could be London’s next big infrastructure project.
A London First taskforce, chaired by former transport secretary Lord Adonis, recently put forward a Crossrail 2 proposal. Initial costs are estimated at £12bn and the line could be open by the early 2030s. It’s a scheme that poses significant, but exciting, challenges in project management and will require concerted collaboration from Parliament, transport officials, industry and businesses across London. This range of inputs into the project, together with the wealth of options still on the table and the increasing pressure on the capital’s commuter networks, means that cross-sector decisiveness in the coming months will be critical to the success of Crossrail 2.
The two main route options for Crossrail 2 are a major suburban and regional line running under Central London via a new tunnel connecting Wimbledon to Tottenham, or a shorter automatic tube line contained within the urban area, but either would provide much-needed relief to London’s southwestern commuter congestion.
With Transport for London’s consultation on Crossrail 2 due to be published next month, and the strong likelihood of cross-party support for the plan, significant activity is already underway to establish a consensus upon which the project can be built. This gives Crossrail 2 one of the key elements needed for its success: a clear roadmap of planning to deliver the project.
What is more difficult at this stage, but equally as critical, is a clear structure of funding and sponsorship. Difficulties arise because the funding arrangements for Crossrail 1 cannot simply be repeated; the two projects are too different in nature. Crossrail 1’s route through the City and out to the west gives it obvious donors in Canary Wharf and, potentially, Heathrow. It also enjoys a supplementary business rate. But these are not immediate options for Crossrail 2. While the funding of Crossrail 2 can take some important lessons from Crossrail 1, it would be complacent to assume that its achievements can be re-hashed.
Handled correctly, the project could prove to be an interesting case study in creative sourcing of funds. A wide range of support could be procured from housing developers, new business rates, and station development. However the funding structure is eventually comprised, effective marketing and promotion will be vital to its formation, as well as high-level political backing. Transport Minister Stephen Hammond has cited the role that the Mayor of London can play by involving himself heavily in the consultation, publicising the project and subsequently encouraging financial support for it. Mayoral support could be hugely influential in obtaining the funding necessary for Crossrail 2’s delivery.
Thanks to the influence of Adonis, Whitehall now views transport as a key department. It acknowledges that previous administrations’ reluctance to invest in rail network expansion and improvements was mistaken, accepting that ignoring transport and infrastructure can have a detrimental on the wider economy.
The Crossrail 2 case needs to show that economic growth and greater connectivity with the rest of the country have to be delivered in order to counter perceptions that London enjoys transport investment levels that are lacking in the rest of the UK.
Moreover, once Transport for London has finished its consultation on the issue, the next general election will not be far off. Whilst cross-party support for Crossrail 2 is likely, speedy decisions will help ensure such a complex project faces minimal disruption.
According to London First’s report, there will be 700,000 new jobs in central London, and 1.5 million more residents in Greater London over the next 20 years, putting ever more pressure on the transport network. Cross-sector conversations need to be translated into swift and effective progress.
John Lehal is managing director of Insight Public Affairs. A summary of a roundtable discussion on Crossrail 2, hosted by Insight, can be read here.
