Transport for London’s preferred route for the proposed Crossrail 2 rail link connecting north and south London is likely to cost more than £27bn according to PricewaterhouseCoopers.
The consultancy firm today published a report setting out options for funding the rail link which Mayor Boris Johnson describes as “essential” to meeting the needs of London’s growing population.
Last month TfL confirmed it favours building a regional scheme running from Cheshunt in Hertfordshire to Epsom in Surrey, passing through Clapham Junction, Victoria and Tottenham Court Road.
Today’s report say this would cost more than £27.5bn in today’s prices – £7bn more than an alternative high frequency ‘metro’ route between Wimbledon and Alexandra Palace.
PwC’s report sets out a number of funding options for the scheme, including retaining the Council Tax contribution introduced to help fund the Olympics and levying a Community Infrastructure Levy on developments around the route.
Ministerial approval would be needed before the scheme can proceed and the Department for Transport is currently consulting with landowners and local councils on protecting the route between Tottenham Hale, New Southgate and Wimbledon.
Mayor Johnson, said: “Crossrail 2 is an essential infrastructure project and this report shows the range of financing initiatives we could employ to get it moving.
“We’ll now be discussing those financing options closely with London’s boroughs, business groups and other key players who have a stake in getting behind Crossrail 2.”
Chancellor George Osborne said the report would make “a useful contribution” to the Government’s consideration of the scheme.
The report was also welcomed by Val Shawcross, Labour’s Transport Spokesperson on the London Assembly, who said it “takes us a step closer to making the vision of Crossrail 2 a reality.”
She added: “With London powering much of the UK’s economic growth it is only right that a significant portion of the funding comes from central Government and that the cost of Crossrail 2 is not unfairly shouldered by London taxpayers.
“At its heart funding for this project needs to be a partnership between central and London Government as well as the businesses and areas which will benefit most. With widespread support for the project across all parties I am sure we will be able to strike the right balance.”