TfL 'could face independent probe into Crossrail project'

Transport for London could face an independent probe into delays to Crossrail, it emerged today.

Andrew Bailey, chief executive of the Financial Conduct Authority, revealed in a letter to Caroline Pidgeon that the watchdog was considering an investigation of TfL's handling of the project, according to construction news website Building.

Transport Secretary Chris Grayling had earlier claimed TfL was suffering "deep financial difficulties" because of Sadiq Khan's partial fares freeze, in addition to the Crossrail project.

He highlighted TfL's finances when asked whether the Department for Transport (DfT) has considered stopping next year's annual increase in the cost of national rail travel in light of the May timetable chaos.

TfL, the devolved body that runs the capital's trains, buses and some of its roads, is planning for a near-£1 billion operating deficit in 2018/19.

Mr Grayling urged the cross-party Commons Transport Select Committee to "look at what's happened to Transport for London now with their partial freeze".

He went on: "Transport for London is in deep financial difficulties at the moment and not simply because of the challenges of Crossrail.

"The problem with a fares freeze - if your costs continue to go up every year, if you're continuing to pay more to your staff - is that you build a long-term and growing underlying problem within your own finances.

"Over a period of time you are sucking a cumulatively larger and larger amount out of the money available to run the network. The only way of counteracting that is people who don't travel on the railways have to pay more and more in taxes."

TfL's finances have come under pressure due to a number of factors.

The decision by Labour mayor Mr Khan to freeze single fares is expected to cost the transport body £640 million over four years, while a government grant worth £700 million a year has been abolished.

A reduction in passenger numbers has also hit revenues.

Train commuters face an increase of up to 3.2% in the cost of season tickets in January.#

Additional reporting by PA