Crossrail 2 managing director Michèle Dix has called for a hike in taxes to fund London’s proposed £30bn Crossrail 2 project amid concerns about costs.
Conservative MP for Wimbledon Stephen Hammond asked Dix how money should be raised to fund the project during a Policy Forum for London event.
“I would just increase taxes,” she said.
Her words have come as the present Crossrail project is running almost £600M over budget and a year late.
Dix’s remarks have also come as the Department of Transport and Transport for London (TfL) conduct an affordability review to determine alternative funding streams for Crossrail 2 and to reduce its overall cost.
In a later statement Dix said: “As part of our overall infrastructure investment work, TfL published a land value capture report in February 2017 setting out the uplift in value benefits along the route and how people might help contribute towards the cost of a scheme.
“There is currently no process, powers or legislation in place to apply land value capture. Any new land value capture proposal would need to be carefully considered and new powers granted.”
She added: “In response to the government’s call to make Crossrail 2 more affordable we have been continuing our work to reduce the cost of the scheme through savings in the design and delivery in order to ensure best value for money.
“We have been working closely with the Department for Transport on the proposals and assisted with the independent affordability review.”
Dix’s words have also come in the same week that MPs, council leaders and business firms have writting to rail minister Jo Johson urging him to back the extension of Crossrail to Ebbsfleet and for £25M to be set aside in the Budget for a business case to be made for the extension.
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