Funding
The funding framework for Crossrail was put in place in October 2007 when the Prime Minister announced that Crossrail’s cost will be met by Government, the Mayor of London and London businesses.
Following the Comprehensive Spending Review in October 2010, a funding envelope of £14.8bn was agreed to deliver the Crossrail scheme in its entirety.
The key elements of the funding package are as follows:
The Mayor of London, through Transport for London (TfL) and the Greater London Authority (GLA), will contribute £7.1bn. This includes a direct contribution from Transport for London of £1.9bn and contributions raised through the Crossrail Business Rate Supplement (BRS), section 106 and the Community Infrastructure Levy (CIL).
Crossrail farepayers will contribute towards the debt raised during construction by TfL.
Government will contribute by means of a grant from the Department for Transport of £4.7 billion during Crossrail's construction.
London businesses will contribute £4.1bn through a variety of mechanisms, including the BRS.
Over 60% of Crossrail’s funding will come from Londoners and London businesses.
Network Rail will undertake works costing no more than £2.3bn to the existing national rail network raised through projected operating surpluses from the use of Crossrail services.
There are also considerable additional financial contributions from some key beneficiaries of Crossrail:
- The construction of Crossrail is part funded by the City of London Corporation, which has agreed to make a direct contribution of £200m and in addition will seek contributions from businesses of £150m, and has guaranteed £50m of these contributions.
- BAA has agreed to a £230 million funding package.
- Canary Wharf Group has agreed to contribute £150m towards the costs of the new Canary Wharf Crossrail station at Canary Wharf. Canary Wharf Group will also design and build the new station.
- Berkeley Homes has agreed to construct a station box for a station at Woolwich.
The £14.8 billion funding envelope for the project is a fully inclusive cost, allowing for both contingency and expected inflation.