infrastructure project in detail
Funding
In October 2010, following the coalition government's comprehensive spending review, the Department for Transport said that it expects Crossrail to cost no more than £14.5bn 7184. This figure represents the funding envelope for the project - the maximum amount of money available.
Before the spending review the funding envelope was £15.9bn, as announced by former Prime Minister Gordon Brown on 5 October 2007. The revised settlement will see the Department for Transport and Transport for London share responsibility for taking around £1bn out of the cost of the project. Additional savings are expected to be identified as Crossrail Ltd and contractors complete further development work.
Both the £14.5bn and £15.9bn figures include allowances for contingency and inflation. However, unlike High Speed 2, the figures quoted do not include the cost of trains to run the new service. According to the notice placed in the Official Journal of the European Union by Crossrail in December 2010 7258, the contract for new trains and a depot at Old Oak Common will be worth between £1bn and £1.9bn.
On top of this, Canary Wharf Group is contributing £150m towards the estimated £500m cost of building Canary Wharf station. Berkeley Homes is expected to agree to pay a similar amount to allow delivery of the underground shell required for a future Crossrail Woolwich station.
There are other, smaller Crossrail-related costs that are not included within the Crossrail funding envelope. For example, public realm works outside stations are seen as highly desirable, and in some cases essential. Crossrail Ltd is championing a programme of artwork for central London stations but with no public funding budgeted private sector contributions are being sought.
How it breaks down
The table below (all figures in £bn) is based on the 2007 Heads of Terms agreement published by the Department for Transport. Since the Heads of Terms was signed funding agreements have been reached with BAA, Canary Wharf Group and the City of London Corporation and so the relevant figures have been updated accordingly.
The revision to the funding agreement in October 2010 will see the TfL core and DfT grant contributions fall - to £2.8bn and £4.4bn respectively if responsibility for saving the £1.4bn reduction on the 2007 package is shared equally. The Mayor of London's office confirmed in January 2011 7377 that the Section 106 and Community Infrastructure Levy contributions sought remain at £300m each.
Table 1: 2007 funding package
TRANSPORT FOR LONDON UNDERWRITTEN | |
Greater London Authority business rate supplement | Log in to view details |
TfL core contribution (borrowed against fare revenues) | Log in to view details |
London Underground interface savings | Log in to view details |
Sale of surplus land and property | Log in to view details |
Section 106 developer contributions (includes Wood Wharf) | Log in to view details |
Community Infrastructure Levy | Log in to view details |
Total TfL underwritten | Log in to view details |
DEPARTMENT FOR TRANSPORT UNDERWRITTEN | |
DfT grant contribution | Log in to view details |
City of London Corporation and City businesses | Log in to view details |
BAA contribution | Log in to view details |
Total DfT underwritten | Log in to view details |
OTHER | |
Network Rail contracted on-network works | Log in to view details |
Depot operating lease | Log in to view details |
City of London Corporation additional | Log in to view details |
Less other residual costs | Log in to view details |
Total other | Log in to view details |
TOTAL FUNDING ENVELOPE | Log in to view details |
Funding profile before the CSR
Transport for London's Business Plan 2009/10 to 2017/18 shows how TfL/DfT guaranteed funding for Crossrail was expected to be phased during construction of the project. The figures roughly - although not exactly - correspond with those in the table above (Table 1 allocates £200m more than Table 2 to TfL/DfT).
Table 2: Anticipated funding profile before CSR
£m | 09/10 forecast | 10/11 | 11/12 | 12/13 | 13/14 | 14/15 | 15/16 | 16/17 | 17/18 | 9-year total |
|---|---|---|---|---|---|---|---|---|---|---|
Fares and other income | Log in to view details | |||||||||
Operating expenditure | Log in to view details | |||||||||
Net operating expenditure | Log in to view details | |||||||||
Crossrail cash commitment * | Log in to view details | |||||||||
CASH REQUIRED (including for Crossrail train operations) | Log in to view details | |||||||||
EXTERNAL FUNDING SOURCES, of which: | Log in to view details | |||||||||
DfT committed funding ** | Log in to view details | |||||||||
GLA funding | Log in to view details | |||||||||
Developer contributions | Log in to view details | |||||||||
Sale of surplus land | Log in to view details | |||||||||
Cash funding from TfL group | Log in to view details | |||||||||
TOTAL CROSSRAIL FUNDING | Log in to view details | |||||||||
* £500m was provided by TfL to Crossrail in 2008/09, resulting in direct funding of £13.2bn up to 2017/18. The remainder of the cost is being met by third party sources, including Network Rail
** Inclusive of contributions from BAA and Corporation of London
Funding profile after the CSR
In October 2010, after the comprehensive spending review, transport secretary Philip Hammond wrote to Mayor of London Boris Johnson setting out how much money the DfT intends to provide for Crossrail each year for the remainder of the spending review period 00516. The letter also specifies how much money the Mayor will be able to borrow for Crossrail through the Greater London Authority.
The DfT has pledged to provide sufficient money beyond 2014 to meet its obligations under the Crossrail funding agreement reached in the CSR.
Table 3: Anticipated funding profile after CSR
£m | 2011/12 | 2012/13 | 2013/14 | 2014/15 |
|---|---|---|---|---|
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