Crossrail go-ahead

ePolitix.com Stakeholders comment on the £16bn Crossrail scheme, which has been given the green light by ministers.

The long-delayed scheme will link Maidenhead and Heathrow in the west to Shenfield and Abbey Wood in the east, running through the centre of the capital.

Construction will begin in 2010, with the first trains running by the end of 2017

Government response:

Transport secretary Ruth Kelly told the BBC: "It will relieve overcrowding and hugely increase the number of passengers being able to travel in and out of London every day.

"It’s important, if we’re to preserve London’s pre-eminence as a financial centre that we do have a first-class 21st century transport system and I think everyone in London recognises that Crossrail is an essential part of that infrastructure."

Party response: Conservatives

Shadow transport secretary Theresa Villiers said: "Of course, we welcome the news that Crossrail has been given the green light, as we welcomed it in 2001 and 2005, but why has it taken Mr Brown 10 years to commit to the funding? His dithering has cost billions for the taxpayer.

"Every time an election seems imminent, the government wheels out the promise of Crossrail. I hope that Brown is really on board and not using it as another political stunt.

"With London business paying a significant share of the cost, it is hugely important that this project does not run over-budget and we will be scrutinising the costs every step of the way. We must not see the pattern of spiralling Olympic costs repeated with Crossrail."

Stakeholder response: Federation of Small Businesses (FSB)

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Chris Glen, transport chairman for the FSB, said: "Crossrail will benefit business, we would not deny that, but any surcharge proposed on all businesses in London to fund Crossrail is iniquitous as it will harm small businesses who are not the primary benefactors from the scheme. 

"Crossrail is aimed to benefit larger businesses in the City of London and so any supplementary tax should be met by those who benefit."

Stakeholder response: British Retail Consortium (BRC)

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BRC director general Kevin Hawkins said: "Crossrail is a much needed and long overdue project but this fundingmodel is both ill-considered and completely inequitable.

"Proportionally, retailers will end up contributing far more than they can ever hope to get back.

"Effectively, they will subsidise the biggest beneficiaries, one of which will be government. If a similar model were applied to projects outside the capital, the outcome for retailers would be dire.

"Today’s decision sets an extremely worrying precedent.

"Even in London,where City institutions will share some of the burden of the extra tax, retailers have still ended up getting the rough end of the deal.

"In regional centres, where extra capital investment from financial institutions cannot be guaranteed, the cost of funding projects in a similar way would fall almost entirely on the shoulders of retailers.

"That is totally unacceptable. The retail industry contributes more than £4.5bn every year in business rates alone. They are entitled to see public projects funded from the public purse to which they contribute so significantly."

Stakeholder response: Construction Products Association

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Allan Wilén, economics director at the Association, said: "The Construction Products Association has long supported the scheme as an investment priority for the UK’s transport infrastructure. 

"The scheme will help to secure the competitiveness and prosperity of London.  Coupled with Thameslink and the planned widening of the M25, the Crossrail project promises to substantially improve travel conditions across and around the capital.

"Collectively, these schemes will also help provide a major boost to wider UK competitiveness. 

"Congestion on the M25 has been referred to by some as Scotland’s biggest traffic jam. The Crossrail and Thameslink schemes will encourage more people visiting or crossing the capital to do so by rail, whilst widening the M25 will further help to ease the congestion faced by hauliers.

"Now that the scheme has all-party support within Parliament and the funding is in place, it is vital that the Crossrail Bill progresses quickly and secures Royal Assent as planned by next summer. 

"We sincerely hope that the current political manoeuvring does not cause any additional delay to this timetable."

Stakeholder Response: London First

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Baroness Valentine, chief executive of London First, said: "This is a great, great day for London and surely the best news for London commuters and businesses in a generation.

"Getting the go ahead for Crossrail has been like piecing together a giant jigsaw, but with real UK jobs and GDP growth at stake.

"At the turn of the millennium, the jigsaw appeared to have been knocked off the table, with some pieces missing altogether.

"Even then, London First refused to give up on Crossrail.

"Now, the government has responded to our call and assembled a renewed funding package, with London's business leaders digging deep into corporate pockets to find the elusive final elements. 

"Canary Wharf, BAA and City of London have all made important contributions.

"The government, albeit somewhat late in the day, has worked hard to deliver this solution. 

"The Treasury and transport teams, ministers and officials are to be praised for their persistence in the end game. In a few years time, London's commuters will come to cherish these efforts. 

"Crucially, for London's future, when Chinese and Indian businesses consider where to site their European HQs, they will see in London a world city investing in its future."

Stakeholder Response: TfL

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A spokesman said:

"This is excellent news for London and the UK as a whole.

"Crossrail will play a vital role in ensuring that London continues to grow and prosper as a world City.  

"Our Transport 2025 report published last year highlighted Crossrail as the single most important project London needs to increase capacity and help meet the future demand for transport.

"Crossrail will be Europe’s largest civil engineering project, providing a state-of-the art modern, quick and reliable railway passing through central London.

"Scheduled to open in 2017, Crossrail will provide a massive increase of ten per cent in London’s public transport capacity. 

"Crossrail will build on our record of delivery over the past seven years, including significant improvements to bus and Tube services, extension of the DLR and more rail capacity through our new London Overground services. 

"Today's excellent outcome is the direct result of the reputation we have built up for delivery. 

"We need to continue that and also bring Crossrail to a successful conclusion - on time and on budget. "