Transport for London (TfL) is set to lose £200 million next year due to Crossrail delays, the London Assembly has concluded.
Earlier this month, Crossrail’s chief executive Simon Wright announced his resignation amid continual delays to construction of the project.
The Elizabeth line was initially due to be completed in December of this year, however, it was revealed back in August that the project would now require another year until it would be up and running.
Last month the government agreed to provide a £350 million loan to the Crossrail development, to help speed up the process.
The former transport secretary, Jo Johnson, announced the interim measure in parliament in late October.
Since the announcement, Johnson tendered his resignation amid disagreements over how the Prime Minister is handling Brexit negotiations.
Gareth Bacon, chairman of the London Assembly’s budget committee said: “We now have fresh information about what the Crossrail delay will cost TfL – almost £200 million in 2019-20 in lost passenger fares and advertising revenue. But the capital costs are still unknown and current estimates are subject to change. We won’t have a real figure until next summer.
“What we do know is that TfL has already maxed out its corporate credit card just to keep the project going to March 2019. Uncertainty about how much Crossrail might end up costing means TfL must do everything it can elsewhere.”
The London Mayor, Sadiq Khan has been criticised for his overseeing of the project, in light of continued delays and a mounting deficit. Notably, as Mayor, Khan is chair of the TFL board.
Alongside delays to completion of the Elizabeth line, Sadiq Khan’s decision to freeze rail fares has also been blamed for racking up a deficit.
Some estimates have suggested that the initiative has cost TfL as much as £640 million.
Nevertheless, Khan has defended the fare freeze as a necessary move to ensure the capital is more affordable for its inhabitants.
