UK Crossrail project to cost £27bn – report

A new report published by PwC has estimated the cost of the Crossrail 2 project at £27bn.

The report, compiled by PwC with input from Transport for London, the Department for Transport, the Treasury, Network Rail and Infrastructure UK, sets out the funding and financing options for the rail project, which draws on funding mechanisms currently being used for Crossrail 1.

These include paying back investment through a combination of revenue generated through fares, and continuations of the Business Rate Supplement and Mayoral Community Infrastructure Levy (CIL), which is currently being used to fund Crossrail 1.

Other options for funding include retaining the Council Tax contribution arrangements that were introduced to help fund the 2012 Olympic Games, as well as potentially increasing the Mayoral CIL.

Funding from property related developments and from land owners adjacent to the line could also be part of the mix of contributions. The report shows that over half the costs of the scheme could be met by London using existing funding mechanisms.