Proposed Funding Options for Crossrail 2 Expansion
Transport for London (TfL) is exploring new and higher taxes as potential funding options for the Crossrail 2 expansion project. The successor to the Elizabeth line, Crossrail 2 aims to connect Hertfordshire to Chessington, Epsom, and Shepperton through London. Despite facing a pause in 2020, officials are safeguarding the route for future development.
Previous Funding Model and Potential Changes
The Chief Executive of BusinessLDN highlighted that a significant portion of the original Crossrail project’s funding came from a levy on business rates and borrowing against future income. With the success of the Elizabeth line in demonstrating the private sector’s ability to contribute to infrastructure funding, new approaches are being considered for Crossrail 2.
One proposed measure includes higher taxes on housing development or the sale of properties near new stations. Additionally, targeted business rate increases around station areas could be implemented. However, these measures are seen as supplementary and not a replacement for government funding.
Collaboration with Central Government
The Government is in discussions with TfL and Mayor Sadiq Khan to devise funding plans that deliver value and lasting benefits for the public. While no final decision has been made, ongoing conversations are focused on securing the necessary resources for the Crossrail 2 project.
A spokesperson for Mayor Khan emphasized the commitment to safeguarding the Crossrail 2 route for future implementation. The Mayor is dedicated to advancing crucial infrastructure projects like Crossrail 2, which are essential for driving growth in London and beyond. Various funding options are being considered to ensure the progress of such significant schemes.
Potential Funding Methods and Considerations
In addition to higher taxes on housing development and targeted business rate increases, other funding avenues are being explored. Public-private partnerships, infrastructure bonds, and contributions from local authorities are among the options under review to support the financing of Crossrail 2.
While private sector involvement is crucial, central government funding remains essential for the project’s success. Balancing different funding sources and ensuring financial sustainability will be key considerations in moving forward with Crossrail 2.
As discussions continue between government officials, TfL, and other stakeholders, the focus remains on securing the necessary resources to bring the Crossrail 2 expansion to fruition. With a strategic approach to funding and collaboration, the project aims to deliver long-term benefits for London’s transportation network and the surrounding areas.
