Crossrail 2 business case passes major Department for Transport hurdle
The business case for Crossrail 2 has been given preliminary approval by the Department for Transport (DfT), bringing the project closer to a decision on its final fate.
The latest business case for the new north-south Tube line was submitted to the government by Transport for London (TfL) in June last year.
It includes details on an updated route for the line, expected to span from Surrey to Hertforshire, how it will be funded and how to avoid the delays and budget blowouts of Crossrail 1.
It is expected TfL would have to fund half of the project, with the other half coming from the Treasury’s coffers.
TfL said, in committee papers released this week, that the transport department has green lit the business case and will be considered in the government’s spending review later this year.
The transport body added: “The DfT commented on the high quality of the document and stated no further work is required on the [business case] at this time, and it could therefore be used to support a decision on the project at the next spending review.”
A DfT spokesperson told City PM that the government is still reviewing whether to fund the project.
“There has been no final government decision on the project, its route or timeline for delivery,” they said.
“We continue to consider a business case for the project, but the government will need to see a realistic and achievable funding proposal.”
It comes after the government’s official infrastructure adviser, the National Infrastructure Commission, said last week that the project should get a funding guarantee this year.
However, problems surrounding Crossrail 1, which will be three years late and more than £3bn over budget, has thrown Crossrail 2 into some doubt.
Mayor of London Sadiq Khan said in January that extra money spent by TfL on Crossrail has likely delayed the opening date of Crossrail 2 before even getting government approval.
There has also been talk that the government’s plans to “level up” the rest of the country by investing in infrastructure in the North and the Midlands will mean projects like Crossrail 2 in London will be left on the shelf.
Adam Tyndall, infrastructure programme director at the advocacy group London First, said Crossrail 2 would benefit the whole country.
“The government must now use the upcoming spending review to accelerate the project,” he said.
“London is ready to pay its fair share of the costs and, in doing so, further contribute to levelling up the whole country.”
The London Assembly’s transport committee chair Navin Shah AM said: “We are glad to see TfL’s Crossrail 2 business case receiving a positive reception from the Department for Transport.
“This goes some way in making Crossrail 2 happen, but there is still a long way to go.
“A decision on the funding for this major infrastructure project in the Spending Review is urgently needed.”