A unique development tax could be levied to fund London's multi-billion pound East-West rail project.

The Crossrail scheme was given the go ahead by government yesterday. Transport secretary Alistair Darling said that developments which stand to benefit from the project would be asked to make an "appropriate contribution" towards the £10 to 15 billion costs.

Forum Response: Crossrail

Sir Christopher Benson, chairman of Crossrail, said: "This is great news for London and the UK - a real boost that business and commuters have all been waiting for.

"The secretary of state's announcement clears the way for us to proceed with a public information and awareness programme that will include the London stations where large volumes of passengers are likely to benefit from Crossrail.

"Later in the year, extensive public consultation will be carried out along the selected routes. With time to incorporate any changes to the final scheme, the draft hybrid Bill for constructing Crossrail will be ready for submission to parliament later in 2004.

"Our expert team of more than 200 people is ready to press ahead and - we can now concentrate on delivering Crossrail to the public.

"Everyone is in agreement - London and the UK need Crossrail, and now we're on course to meet their expectations."

Forum Response: Corporation of London

Michael Snyder, chairman of the policy and resources committee at the Corporation of London, told ePolitix.com: "The City will be delighted with the government's announcement that it supports Crossrail in principle.

"London needs Crossrail urgently and the work should start soon. I therefore urge all involved to keep the period for detailed consultations on route and funding, that are now to follow, as short as possible.

"The route must in any case include Heathrow, Stratford and the Isle of Dogs for the full scheme to work.

"We will want to look carefully at funding plans to make sure that no undue burdens are placed on City businesses.

"It is also essential that any possible business funding does not require any new legislation to be implemented, which will delay the project further."

Forum Response: Institute of Directors

James Walsh, policy analyst at the IoD, told ePolitix.com: "Crossrail needs to be seen as part of a genuinely integrated transport strategy.

"For example, widespread road pricing would help to deliver some of the revenue needed for these major investments.

"The government should also look to capitalise on the windfall land price gains. The Canary Wharf developers contributed £300 million towards the Jubilee Line extension. The same approach could be used with Crossrail.

"The private sector certainly has a role on the finance side. But the most important requirement is a sense of urgency. This is where politicians must start to give a stronger lead."