Crossrail will bring London businesses six times the benefit of the supplement to fund it - up to £1.24bn of benefit per year when it opens in 2017 according to new research published today.
New modelling suggests that the wider economic benefits of Crossrail due to quicker journey times and reduced congestion will have benefits beyond the boroughs that benefit directly from the £16bn project.
The research, by consultants Colin Buchanan, examined a London in 2026, once Crossrail has had almost a decade to settle-in.
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.”
The study estimates the economic benefits across London to add-up to some £1.24bn at 2008 prices.
Boroughs directly served by Crossrail will benefit the most - by more than £60M a year – including Camden, Greenwich, Lambeth and Newham, but the research suggests that outer London boroughs will also receive a huge boost.
In Barnet and Croydon total earnings of employees will increase by some £24M due to the productivity gains Crossrail will bring. Both are estimated to gain by £30M each in total.
Director of Land & Property at Crossrail, 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. In turn the wealth generated by these additional jobs will be spread across every London borough not just those that are on the Crossrail route”.
The Buchanan report suggests that the total economic benefit to London will be around six times more than the annual Business Rate Supplement contribution. £3.5bn of Crossrail’s £15.9bn cost will be met a Business Rate Supplements levy that will generate between £150M and £200M per year, assuming the levy is set at 2% of rateable value for properties over £50,000.