Crossrail's £10bn go-ahead

The £10billion Crossrail project linking east and west London has finally got the go-ahead.

Transport Secretary Alistair Darling said there was a "clear case" for the long-awaited scheme.

It will create a twin-bore tunnel from Paddington to Liverpool Street connecting with existing and new rail links to Heathrow in the west and the Isle of Dogs, Stratford and Shenfield to the east.

Work will start immediately on putting together a team of experts to come up with a financial package - which must include a "very substantial contribution" from private companies.

But in a move which will disappoint campaigners, including Ken Livingstone, the gruelling legal process to set up the scheme will not begin until November 2004. The Mayor had been calling for a Bill to be ready to be put to MPs in the spring.

There also appears to be little chance of the project being ready for the start of the Olympic Games, if London is chosen as the 2012 host city.

Nevertheless MPs who have been pressing the Government for an announcement for years said they were delighted by the news. A massive public consultation exercise will now be launched. It will cover everybody who has an interest over any section of Crossrail's planned route, including homeowners, businesses and local authorities.

Mr Darling took the decision to go ahead after being convinced by a business case put to him by Strategic Rail Authority chief Richard Bowker and Bob Kiley, London's transport commissioner.

As the Standard reported this month, the business plan predicted that building Crossrail would create 130,000 new jobs in the east of London, providing a major boost for the capital's economy.

The business plan also said the scheme was desperately needed to relieve pressure on the Central and Jubilee lines, both of which are stretched to capacity.

A source close to Mr Darling said: "The transport case and the economic case stack up." The source also called on business leaders, who have been vociferous in demanding Crossrail, to stump up the billions of pounds needed to pay for it.

He said: "Businesses have been very, very vocal in their support for the project. Come the autumn we will be asking to see the size of their chequebooks."

Ministers privately hope that around £7billion to £8billion of the cost will be raised privately, leaving the taxpayer with a final bill of around £2.5billion.

But, depending on its exact final blueprint, the cost could rise to £ 15billion.

Chancellor Gordon Brown is to be closely involved in the summerlong drive to put together a viable package. Despite the hopes of campaigners for a quick start on drawing up the hybrid bill, which will enact the entire planning process for Crossrail, ministers believe they are right to delay the process until next November.

Mr Darling said: "There is a clear case for Crossrail and we remain committed to the scheme.

"In order to give the project the best chance of success, I am assembling an expert team to assess the proposal to ensure it offers good value for London and is deliverable.

"Previous proposals for Crossrail have failed due to flawed planning. We have

to make the right decision rather than a quick decision. It is vital that we learn from the mistakes of the past."

Mr Darling told BBC1's Breakfast with Frost programme: "Crossrail is very important ... we believe that it is essential for London's future expansion."

Ilford North MP Linda Perham, chair of the Crossrail parliamentary group, said: "The decision is fantastic news for Londoners, who won't just get a better transport service but will also benefit from more jobs, more homes and a regeneration of some of the poorest areas of the city.

"London has an exciting future and Alistair Darling deserves congratulations for proving his commitment to improving transport in London."