A new Tram for the City?

Visitors to a London Olympics could be transported by tram under plans being championed by the capital's richest council.

The Corporation of London is backing a new tram line between Battersea and Hackney amid fears that the long-awaited Crossrail train line will never be built.

It has been told by consultants that it would also be viable to extend the "City Tram" from Hackney to Stratford, which has been earmarked as the likely location for the Olympic stadium if London wins the 2012 Games.

The tram would cost £260million - compared to an estimated £10billion for Crossrail, which would link Paddington and Liverpool Street via tunnels. The tram would call at Vauxhall, Elephant and Castle, Borough, Bishopsgate and Shoreditch, crossing the Thames on London Bridge. It would cost £9million a year to run and could open by 2009.

A spokesman for the corporation said: "We are still seriously backing Crossrail and Thameslink 2000. This is seen as something that will complement them."