Crossrail, one of Europe’s largest infrastructure projects, received royal assent on 22nd July 2008. Construction of Crossrail is forecast to start in 2010 and become operational in 2017. This mega rail project is expected to provide a significant boost to the UK’s economy in terms of direct and indirect employment benefits. The scheme has taken nearly a decade to achieve this significant milestone having had its private bill rejected in the early 1990s. The UK’s central government has at long last provided ‘genuine’ political support and commitment to Crossrail, a critical factor during planning that is essential despite the scheme having a technically robust business case.
1. BACKGROUND
The concept of a central London east–west crossing originated nearly 150 years ago. In 1845 a proposal was put forward to build an east–west link across central London to link the Great Western railway and Great Eastern railway but failed to progress; the more recent origins are reported to be from the Abercrombie Report (published 1944) and The London Transportation Study (published 1965).1, 2
The modern-day version of Crossrail was derived from the Central London Rail Study3 commissioned by the secretary of state for transport, in March 1988, to provide an ‘end-of-the-century’ solution to the overcrowding and congestion experienced on the national rail and underground networks and roads.4 With the government having decided on an east–west crossing a private bill was deposited in the autumn 1991 to obtain powers for the scheme. After a multitude of government-sponsored reviews, however, the bill was rejected in early May 1994. This decision was made, it is understood, on the basis of an economic recession, interference with the privatisation of British Rail and preference for the Jubilee line extension that was still in its legislative process.4 The government consequently safeguarded the scheme for the future.
The City of London Corporation revived the scheme in 1999 and the deputy prime minister, John Prescott, asked the Shadow Strategic Rail Authority to carry out a review of issues relating to rail travel on an east–west axis across London. In 2001, Cross London Rail Links Limited (CLRL Ltd) was formed to define and develop proposals for a Crossrail link and provided with a budget of £154 million to conduct a feasibility study and acquire statutory powers for Crossrail line 1 and line 2 (formerly the Chelsea–Hackney line).5 After an unflattering review of the scheme and its business case by Adrian Montague, a hybrid bill was deposited in the House of Commons on 22 February 2005, to construct, operate and maintain the scheme.6 The bill had 466 petitions against in the House of Commons and 113 in the House of Lords. The bill had its final reading in early July and received royal assent on 22 July 2008.7, 8
2. ‘GENUINE’ POLITICAL SUPPORT AND COMMITMENT IS FUNDAMENTAL
Crossrail is now set for delivery. This is clearly welcome news for the UK and London economy and the construction industry, as it is one of the largest construction projects in Europe. Crossrail provides an example of a transport project that has taken nearly two decades to achieve a position of ‘genuine’ political support and commitment from central government; a critical factor that has in most cases needed to be second-guessed by promoters for infrastructure projects and which can incur significant cost to the taxpayer when wrongly guessed. With Crossrail the prime minster, Gordon Brown, has shown ‘genuine’ political support and commitment and demonstrated this by announcing a £16 billion funding package on 5 October 2007 which will cover costs and inflation increases.7 Historically funding for major infrastructure in the UK has always been an issue and is frequently left until the late stages of planning. The funding package reported for Crossrail in essence comprises: the Department for Transport and Transport for London are responsible for £5·6 billion; the Greater London Authority £7·7 billion; and contributions from British Airports Authority, the City of London Corporation, Canary Wharf Group and Berkley Homes.7
3. IMPACT ON UK ECONOMY AND THE CONSTRUCTION INDUSTRY
The scheme primarily aims to support: the development of London as a world city, its role as the financial centre of Europe and the UK, the economic growth of London and regeneration of areas by tackling congestion and the lack of capacity on the existing network; and improve rail access into and within London.2 Enabling works are due to start by the end of the year with construction expected to start in 2010 and with the scheme operational in 2017. The go-ahead for this project is welcome news for the UK economy and the construction industry and provides a £20 billion boost to the UK economy and an estimated 14 000 jobs at the height of construction. The wider economic appraisal for the scheme is healthy with a benefit:cost ratio of 2·60: 1 (with optimism bias 2·40:1). Such benefits as employment opportunities and improved productivity and outputs are factored into the calculation; CLRL Ltd estimate that the central area will add 5000–13 000 jobs in 2016 that will increase to 23 000–40 000 by 2026.9
