Crossrail

10.12.18

Crossrail set for further £1bn bailout and potential further delay

Ministers are expected to announce a fresh £1bn bailout for Crossrail and admit that the project might need to be delayed beyond 2019.

According to the Financial Times, officials from the DfT and TfL, who have been in emergency talks for months, held further negotiations on Sunday ahead of an “imminent public announcement.”

On its original schedule, the flagship Elizabeth Line project was due to open on Sunday by the Queen, but it has been plagued by spiralling costs, the resignation of its chairman last week, and a nine-month delay announced in August.

Sir Terry Morgan’s resignation has heightened speculation that further problems are yet to be disclosed, and the FT has now reported that people close to the project believe the latest rescue plan will involve £1bn of new funding.

Later this week, Sadiq Khan is likely to set out various cuts to projects to fill the various financial black hole left by Crossrail’s problems, and a TfL spokesperson said “work is continuing between the government, mayor and TfL on finalising a financial package.”

The FT reports that former Labour MP Nick Raynsford is also expected to be appointed as Crossrail’s deputy chairman.

One person close to the project said the new expected open date of Autumn 2019 was now “wildly optimistic” given the current problems with signals, trains and stations which are leading to “growing panic” amongst TfL executives.

Crossrail received an injection of £590m in July, and was handed a £350m government lifeline in October to prevent further delays. The additional £1bn is now needed to address TfL’s “urgent cash flow problems.”

The news will heap more pressure on TfL and Sadiq Khan, who have been heavily criticised over Crossrail’s delays and rising costs. The London mayor has also been accused of “deliberately misleading” the public and London Assembly over when he knew about the delay.

Khan denied the claims. However, before his resignation, Morgan said he was “in absolutely no doubt” that the mayor knew and Khan has now been summoned to a hearing regarding the matter.

Caroline Pidgeon, chair of the London assembly transport committee, said she was “really worried” about TfL’s budget, and forecast a swathe of cuts in this week’s revised TfL business plan.

Image credit Dominic Lipinski

Comments

There are no comments. Why not be the first?

Add your comment

 

rail technology magazine tv

more videos >

latest rail news

Northern leaders warn Treasury against scrapping under-fire HS2

23/05/2019Northern leaders warn Treasury against scrapping under-fire HS2

Scrapping HS2 would be a “disaster” and would undermine Britain’s “national prosperity for decades to come,” more t... more >
Network Rail unveils new regional managing directors

23/05/2019Network Rail unveils new regional managing directors

Network Rail has announced five new regional managing directors as part of its “evolution” towards a more passenger-focused approach.... more >
£800m worth of rail haulage contracts awarded by Network Rail

22/05/2019£800m worth of rail haulage contracts awarded by Network Rail

Network Rail has awarded contracts for rail haulage and the operations of its engineering trains and seasonal treatment services for Control Peri... more >

editor's comment

23/01/2018Out with the old...

Despite a few disappointing policy announcements, especially for the electrification aficionados amongst us, 2017 was, like Darren Caplan writes on page 20, a year generally marked by positive news for the rail industry. We polished off the iconic Ordsall Chord (p32), hit some solid milestones on Thameslink (p40), progressed on ambitious rolling stock orders (p16), and finally started moving forward on HS2 (p14) ‒ paving the way for a New Ye... read more >

last word

Encouraging youngsters to be safe on the railway

Encouraging youngsters to be safe on the railway

This summer, Arriva Group's CrossCountry and the Scout Association joined to launch a new partnership to promote rail safety among young people. Chris Leech MBE, business community manager at the... more > more last word articles >

'the sleepers' daily blog

Meeting clients, suppliers and stepping forward

23/05/2019Meeting clients, suppliers and stepping forward

The Midlands 30-year plan will deliver many economic benefits and will need a wide and diverse supply chain to deliver some of the key projects. We caught up with long running sponsors of TransCityRail, Bridgeway Consulting Limited, specialists in Site & Ground investigations, Geomatics and Infrastructure, to discuss why networking events ... more >
read more blog posts from 'the sleeper' >

comment

The railway franchising model is broken, and passengers are paying the price

13/05/2019The railway franchising model is broken, and passengers are paying the price

Meg Hillier, MP for Hackney South and Shoreditch and chair of the Public Accounts Committee (PAC), gives her view on the state of the UK’s ... more >
NSAR: Tackling the digital skills shortage

13/05/2019NSAR: Tackling the digital skills shortage

The National Skills Academy for Rail (NSAR) chief executive Neil Robertson returns to write for RTM, this time, to assess the digital skills shor... more >
Delivering cost-effective electrification

13/05/2019Delivering cost-effective electrification

David Clarke, technical director of the Railway Industry Association (RIA), sets out the findings of a new report on how rail electrification can... more >
5G: An opportunity to revolutionise on-train connectivity

13/05/20195G: An opportunity to revolutionise on-train connectivity

Simon Holmes, group head of digital (engineering) at FirstGroup, introduces us to the 5G solution being delivered for the rail sector.  ... more >

rail industry focus

View all News

interviews

Advancing the rail industry with management degree apprenticeships

08/05/2019Advancing the rail industry with management degree apprenticeships

In answering the pressing questions of how current and future generations of managers can provide solutions to high-profile infrastructure projec... more >