London's business leaders have rejected one of the government's main ideas for paying for Crossrail, according to a think tank.

The developers, which include Canary Wharf Group, British Land and Tesco, say that it would be impossible to levy a tax paid on the uplift in property values after new railway lines are built.

They argue that such a tax would be arbitrary and unfair, in a pamphlet published today by the Social Market Foundation.

Julia Lalla-Maharajh, director of transport at London First, said: "Business has accepted that it has to contribute to Crossrail but this support is not unconditional. We must have more detail about the project. A levy on business rates appear to be the most equitable way."

The value of property in the Crossrail area is £107 billion and that is estimated to rise by between five and 10 per cent if Crossrail goes ahead.