Crossrail 2 funding could include new taxes as project stalls
Crossrail 2 could be funded in part by new and higher taxes as Transport for London (TfL) says more cash is needed to get the project off the ground. The successor to the Elizabeth line would span from Hertfordshire north of London, through the capital and then out the other end to Chessington, Epsom and Shepperton.
Further work on the design and development of Crossrail 2 was paused in 2020. But its route is being 'safeguarded' by officials.
The Chief Executive of pressure group BusinessLDN told the Financial Times that 'a significant proportion' of funding for the original Crossrail project 'came from a levy on the business rates in the area and from borrowing against future income'. He added that the Elizabeth line had shown there is 'room to squeeze more money out of the private sector' to fund new infrastructure.
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Mr Dickie told the national newspaper that this could include 'higher taxes on housing development or the sale of existing houses near new stations'. Alternatively, there may be 'more targeted' business rate rises around stations.
However, he added, that could 'never be a substitute for central government cash'.
Government 'in conversation with TfL'
It is understood that the Government is working with the Mayor of London, Sadiq Khan, on funding plans for transport in the capital, including providing 'value for money and lasting benefits' for the public.
No decision on the future of the project has been taken, but officials remain in conversation with TfL.
A spokesperson for Mr Khan did not rule out the proposed funding methods. They told MyLondon: “The Mayor has pledged to safeguard the Crossrail 2 route so that this much-needed project can be brought to fruition in the future.
"He is committed to ensuring vital schemes like this, which will unlock growth in London and around the country, can progress, and will consider a variety of funding options for such schemes.”
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