A major economic study released today confirms 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 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.
Jonathan Baggs, Crossrail Press Office, Tel. 020 3229 9552
Email: [email protected]
Notes to Editors
The Crossrail Transport and Economic Benefits Study, Colin Buchanan consultants
A copy of the study as well as further copies of previously published reports can be downloaded here.
The total annual transport and economic benefits for each London borough (modelled for the year 2026) are as follows:
|Borough||Total Benefits(£m)||Borough||Total Benefits(£m)|
|Barking and Dagenham||16.7||Hounslow||26.6|
|Bexley||58.3||Kensington and Chelsea||35.2|
|Brent||31.3||Kingston Upon Thames||18.3|
|Greenwich||84.5||Richmond Upon Thames||21.0|
|Hammersmith and Fulham||23.3||Sutton||13.6|
Crossrail at a glance
Crossrail will run 118 km from Maidenhead and Heathrow in the west, through new twin-bore 21 km tunnels under central London to Shenfield and Abbey Wood in the east. It will bring an additional 1.5 million people within 60 minutes commuting distance of London's key business districts.
When Crossrail opens in 2017 it will increase London's public transport network capacity by 10 per cent, supporting regeneration across the capital, helping to secure London's position as a world leading financial centre, and cutting journey times across the city.
Preparatory works will continue throughout 2009. Main Crossrail construction starts in 2010. Crossrail is scheduled to open for service in 2017. Crossrail is promoted by Crossrail Limited (CRL). CRL became a wholly owned subsidiary of Transport for London on 5 December 2008.
The Crossrail Act received Royal Assent on 22 July 2008, granting the powers to build the railway. On 24 July 2008, Crossrail was appointed the lead Nominated Undertaker for the delivery of the railway.
Since then, Crossrail has been moving rapidly ahead and progress includes:
- New Crossrail Board appointed with five Non-Executive Directors
- Terry Morgan CBE appointed Non-Executive Chairman with effect from November 2009
- Rob Holden CBE appointed Chief Executive with effect from April 2009
- Compulsory Purchase Notices issued and property acquired at Tottenham Court Road.
- Tender issued for £500m London Underground works at Tottenham Court Road along with trial trenches and utility diversions to enable main construction programme to commence early 2009. The contract for the Crossrail works at Tottenham Court Road will be advertised at a later date
- Signing of £230m funding agreement with BAA, and signing of £150m funding agreement with the Canary Wharf Group, with CWG taking responsibility for the design and building of the station at Canary Wharf. £350m funding agreement with the City of London
- Signing of main agreements underpinning governance
- Design Consultancy Framework Agreements awarded
- Appointment of Crossrail Programme Partner and Project Delivery Partner expected by April 2009.
- Crossrail appointed DHL to recommend logistical strategy to minimise impact of construction on central London