The Pledges and the Problems

The Evening Standard (London, England), August 7, 2008 | Go to article overview

The Pledges and the Problems


1. BAA Amount due: Undisclosed but believed to be ?250 million.

Possible problems: BAA says it will contribute but has not yet signed on the dotted line. The airport giant is sufficiently large to weather the economic storm being felt by the aviation industry but its reluctance to commit a sum to the project is raising eyebrows.

2. City of London Corporation Amount due: ?350 million Possible problems: Raising ?150 million from London firms may prove difficult though ?50 million of this is being underwritten by the authority. The other ?200 million will come from the corporations funds.

3. Supplementary business rate Amount due: ?3.5 billion Possible problems: Needs a new Bill to be approved by Parliament to allow the levy. May face opposition from some town halls in areas where businesses may not benefit directly from the rail link. These firms could launch a legal battle against having to pay. Amount from the levy may fall in an economic downturn with more businesses going bust. …

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