The City of London voted yesterday for a financial contribution to the stalled £16 billion Crossrail project that would allow the East-West London link to be included in this month’s Comprehensive Spending Review.

The City Corporation, the local authority for the Square Mile, confirmed in a statement last night that a contribution had been approved, after a meeting of the Court of Common Council, the main elected body.

It was held in private session and details of the package were not revealed.

They will be the subject of a forthcoming formal announcement by the Treasury, which could come as soon as today.

It is believed that the package involves a £350 million contribution by the Corporation in return for an annual payment by central government to the council.

This is expected to be in the region of £10 million.

The vote, which was unanimous, clears one significant logjam that has blocked completion of the project, which the City believes is important to the survival of London as a world financial centre.

As late as last week, the Corporation was insisting that it would not make a contribution to Crossrail, saying that the project would benefit London as a whole and should be paid for out of central funds.

However, the Treasury has always insisted that the financial community would benefit, especially from the building by 2015 of a fast link between Canary Wharf, the City and Heathrow airport.

At yesterday’s debate in the City, called as a special meeting of the Court, Crossrail was the only item on the agenda. It is understood that there was some initial opposition to a contribution by the City and considerable concern over the effect on its finances.

Ruth Kelly, the Transport Secretary, had wanted an agreement to be reached by yesterday. Ministers had already been satisfied with private sector funding pledges from Canary Wharf and from BAA, the airports operator.

It has been estimated that Crossrail, which is not expected to open until 2015, at the earliest, could deliver economic benefits worth £30 billion over 60 years, double the amount that it would cost to build.

More than £300 million has been spent planning the project and 400 people are working on it, although only a single preparatory shaft has been dug at Moorgate.

On track

— Under the Crossrail scheme Heathrow would be linked directly with the West End, the City and Docklands, with trains carrying 1,500 people taking only 43 minutes to travel from the airport to Canary Wharf

— A Crossrail Bill was first submitted to Parliament in 1991. It put the cost of the project at £1.4 billion

— The project was officially costed at £10 billion four years ago, but could cost as much as £16 billion before rail receipts make the scheme pay for itself

— The scheme would be the biggest expansion of the capital’s transport network for 40 years

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