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A heated clash between ministers and the City over funding London’s £16 billion Crossrail east-west link has left the fate of the project in the balance, with deeply entrenched positions on both sides leaving hopes of a go-ahead this year in growing doubt.
The City of London Corporation dug in its heels this week against government demands that it should raise an extra £300 or £400 million from businesses in the Square Mile to clinch the funding package needed for the long-delayed link, to get a green light.
The Times understands that ministers are determined that the City, as a beneficiary of Crossrail, must pay the extra contribution, which is barely more than 2 per cent of the total bill.
With the effective deadline of next month’s three-year Treasury plans for government spending, which ministers still hope will seal plans for Crossrail, now looming, time is fast running out for a deal to be brokered.
A Whitehall source said it was a game of chicken. “They [the City Corporation] think that if they hold out, we will blink. We won’t,” the source said.
Ruth Kelly, the Transport Secretary, wants agreement by next Tuesday. Ministers are already satisfied with private sector funding pledges from Canary Wharf and from BA and BAA, the airports operator.
The Government is pressing for the City to use fundraising mechanisms, such as planning consent levies, to find the cash. Present City plans are for a 4p in the pound rise in business rates from the present 44p level to meet its obligations to the project.
But Michael Snyder, chairman of the Corporation’s policy and resources committee, said: “Those businesses in the Square Mile being asked to pay more for Crossrail are entitled to ask why the billions they pay in taxes are not already enough,” he said.
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Sir,
The govt is willing to rubber stamp what seems like unlimited funds and guarantees for the olympics without batting an eyelid yet they dig their heels in at a paltry 2% shortfall in Crossrail funding.
I believe we were promised substance over presentation by the change in PM if the CSR does not give this crucial project the green light the lie will surely have been given to that.
In response to Mr Haque to say that Crossrail is not the solution to Londons transport needs , by itself it may not be, but at least its a step in the right direction. Must we forever continue using the infrastructure laid down by the Victorians.
W Casey, london,
''East End (London's future growth area)'', says Adrian Smith from New York, USA!
On what criteria? After what example?
Canary Wharf perhaps?
So that the ordinary people who make up the East End, will be 'growthedâ out of what still remains our home area?
Muhammad Haque, London, UK
With inflation in the construction industry running at 5% or more, a years delay could add £750m to the cost of the project. As the parties seem to agree on the need and benefits of the scheme, then it is clearly going to be beneficial to reach agreement on the split of funding sooner rather than later.
S Rowsell, West Midlands,
I believe the whole general public will benefit from the Crossrail scheme. It will connect major epi-centres like the West End, the City, Liverpool Street, Heathrow and Paddington with the East End (London's future growth area) creating a true traversal east - west train line. London is one of the most difficult cities to traverse by public transport. Paris has it's RER system and puts us to shame! New York has it's Express train service that runs 24 hours. London deserves a true express train service that helps Londoners, commuters and tourists travel to, from and through London with ease.
Adrian Smith, New York, US
Our local station "Acton Main Line" was due for extensive redevelopment to accommodate Crossrail, it turns out that the land required for this has been sold off by Network Rail for housing development. Perhaps this indicates the level of confidence that this project will not go ahead.
Mark Aston, London, UK
The 'Crossrail Bill' is still in the UK House of Commons, is being promoted as a mantra, rather than as any solution to the transport needs in London. Its chief promoters have also confirmed that it is a project to link various Big Business locations and to serve their interests. Not a public transport scheme! At Second Reading [19 July 2005] the then Transport Secretary Alistair Darling [now UK Finance Minister] claimed that it was compatible with the [European Human Rights] Conventions. We have maintained that it is not. If it were so compatible then they would not have effectively banned the scrutiny of the contents and the alleged merits of the plan as contained in the CrossRail Bill. The âselect committeeâ set up apparently for scrutinising the Bill has been banned from allowing the fair and manifest examination of the plan. This list of bans shows that the Bill COULD NOT possibly be compatible with the Conventions nor could it have been intended by its promoters to be so compatible. Significant numbers of critics, objectors and opponents of the particular scheme have been denied the say by the MPs token select committee. Apart from the latest funding imbroglio, the present Crossrail scheme is ripe for extensive legal and constitutional challenges, a number of which we are determined to put forward to stop this Crossrail hole Bill being given the go ahead. The community in the East End of London through Khoodeelaar! campaign against the CrossRail hole Bill have been demanding the application of public resources to the addressing of transport needs, rather than to a sloganised scheme that has become a mantra of zealous lobbying that is miles off the rails of the subject â the transport needs of the people of [and in] London!
Muhammad Haque, London, UK
The âCrossrail Billâ is still in the UK House of Commons, is being promoted as a mantra, rather than as any
solution to the transport needs in London. Its chief promoters have also confirmed that it is a project to link various
Big Business locations and to serve their interests. Not a public transport scheme! At Second Reading [19 July
2005] the then Transport Secretary Alistair daring [now UK Finance Minister] claimed that it was compatible with
the [European Human Rights] Conventions. We have maintained that it is not. If it were so compatible then they
would not have effectively banned the scrutiny of the contents and the alleged merits of the plan as contained in the
CrossRail Bill. The âselect committeeâ set up apparently for scrutinising the Bill has been banned from allowing the
fair and manifest examination of the plan.
This list of bans shows that the Bill COULD NOT possibly be compatible with the Conventions nor could it have
been intended by its promoters to be so compatible. Significant numbers of critics, objectors and opponents of the
particular scheme have been denied the say by the MPs token select committee. Apart from the latest funding
imbroglio, the present Crossrail scheme is ripe for extensive legal and constitutional challenges, a number of which
we are determined to put forward to stop this Crossrail hole Bill being given the go ahead.
The community in the East End of London through Khoodeelaar! campaign against the CrossRail hole Bill have
been demanding the application of public resources to the addressing of transport needs, rather than to a sloganised
scheme that has become a mantra of zealous lobbying that is miles off the rails of the subject â the transport needs
of the people of [and in] London!
Muhammad Haque, London, UK