27.02.09
Crossrail’s wider economic boost to London and South East revealed
Study shows new railway will deliver over £1.2 billion a year in transport and productivity benefits with positive impact felt by every London borough
A major economic study has confirmed that Crossrail will deliver substantial economic benefits for the whole of London and the South East after the new railway opens in 2017.
Faster journey times, reduced road and public transport congestion, improved productivity and higher earnings are the key benefits that the new railway will deliver to both businesses and individuals. The study, conducted on behalf of Crossrail by consultants Colin Buchanan, found that when results are modelled for just one year – 2026 – the annual economic benefit across all London’s boroughs is estimated at £1.24 billion at 2008 prices.
Whilst some boroughs in inner London will benefit by more than £60 million a year – including Camden, Greenwich, Lambeth and Newham – the report also finds that outer London boroughs will receive a major boost. In Barnet and Croydon, for example, total earnings of employees alone are expected to increase by approximately £24 million in each borough as a result of the productivity gains that Crossrail will enable business to deliver. Overall, both boroughs are estimated to gain by approximately £30 million each.
The Mayor of London, Boris Johnson, said:
“This incredible snapshot of the impact of Crossrail confirms the scheme will be hugely advantageous for each of the capital’s boroughs and its benefits will be felt beyond London’s boundaries. During this time of economic austerity, Crossrail is simply the right project at the right time to ensure the future prosperity of our city. The thousands of jobs and opportunities this project will provide will be a considerable boon for residents and businesses throughout London, the South East and even the wider UK economy.”
Crossrail Director of Land & Property, Keith Berryman said:
“The scale of Crossrail is significant to the economic future of London and the UK. The new railway will boost London’s rail capacity by 10% when it opens in 2017 and the benefits of reduced congestion on roads and public transport as well as productivity gains by businesses will be felt across the capital and the South East.
“Crossrail will enable the creation of thousands of additional jobs in London’s business centres with more people able to access major employment centres such as the West End and Docklands.”
Crossrail is critical to the major increase in development planned for major economic centres such as the Docklands over future years, which in turn will support the creation of high-value jobs.
The findings of the report show that the total economic benefits to London boroughs of £1.24 billion each year will be around six times higher than the estimated annual Business Rate Supplement (BRS) contribution by London’s businesses. This BRS contribution from business would be between £150 million to £200 million each year if the levy is set at 2p in the pound of rateable value for properties over £50,000.
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