Crossrail gets green light from Brown

The Crossrail project is finally set to climb off the drawing board now it has the green light from prime minister Gordon Brown following agreement on a unique funding deal for the £16bn scheme.

Crossrail will link Maidenhead and Heathrow to the west of London with Shenfield and Abbey Wood to the east of the capital. The new rail link will include new stations at key city locations including Bond Street, Farringdon and Canary Wharf.

Work on the project is scheduled to start in earnest in 2010 with first trains running in 2017. The legislation needed to allow the scheme to go ahead is expected to get Royal Assent next year. Enabling works will follow during 2009 and full-scale construction work should start by the end of the decade.

The cost will be split between the Government, Crossrail fare payers and the private sector. The City of London is making a multi-million pound contribution and businesses in the capital will pay a levy.

Property consultants CB Richard Ellis (CBRE) stressed that the transport scheme will have a major impact on the capital's office and retail market, as well as giving a boost to development prospects at places like Maidenhead and Hayes in west London.

Kevin McCauley, CBRE's head of London research, said: "As London planning policy is supportive of higher density development at major transport interchanges, we can expect major new office schemes to be proposed near the new Bond Street and Tottenham Court Road Crossrail stations.

"Farringdon will provide a key interchange between Crossrail and the upgraded Thameslink, and hence is likely to be a significant focus for new development."

He also argued that Crossrail would support growth in established core locations and highlighted the prospect of further office development in Docklands and around Paddington.

Read the 10 Downing Street news story

Roger Milne

11 October 2007