Crossrail Backers Raise Doubts over Financing

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

Crossrail Backers Raise Doubts over Financing


Byline: NICHOLAS CECIL

SERIOUS doubts were raised today over funding for Crossrail with warnings that the landmark project could be hit by delays.

The Standard can reveal that vital finance for the rail scheme has not been agreed nearly a year after the Government claimed a ?16 billion deal had been struck.

Airports operator BAA is refusing to publicly commit a specific sum to the cross-London rail link despite being expected to put in around ?250 million.

Concerns are also growing that City chiefs will struggle to raise a further ?150million for the project from London businesses in the economic downturn.

Experts are warning that the funding agreement could unravel, delaying the long-awaited scheme for up to five years.

Failure to raise funds from the private sector could lead to the Treasury dragging its feet over releasing billions for the project, particularly in an economic slowdown, one former minister said.

But the Department for Transport denied that the funding package would be revised and said business had to make a "fair contribution".

Questions also remain over the three main funding pillars ?3.5 billion from a special levy on London businesses, ?2.7 billion to be borrowed on the back of future rail fares and ?5.1 billion from the Government.

The Mayor's office stopped short of giving a cast-iron reassurance that the billions expected from the supplementary business rate would be raised.

The financial worries emerged weeks after the Crossrail Bill received Royal Assent, effectively giving the project outline planning permission. Former Tory transport minister Steve Norris said: "Don't let anybody believe that there are not some serious question marks over the project. It could slip." Mr Norris believes the Government will only release the billions needed once a deal is finalised and that this needs to be done swiftly so contracts can be signed and work progressed.

Sir Peter Hall, professor of planning at University College London, said he was stunned to learn that BAA had not yet agreed how much it was putting in.

Speaking from China, he told the Standard: "These deals have a habit of unravelling. That's why it is astonishing that the details are so vague. There are serious concerns over whether the package is really there." He also warned of the risk of construction delays.

BAA said it would pay towards Crossrail and that it was "working with" the Department for Transport and Crossrail on a final amount.

The flow of cash for Crossrail is due to hit more than ?1billion by 2010 and ?2 billion-a-year by 2012 before slowing ahead of its planned opening in 2017.

The line will run from Maidenhead and Heathrow under central London to Shenfield and Abbey Wood in the east. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Crossrail Backers Raise Doubts over Financing
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.