PM: we can't afford not to build Crossrail

Tony Blair today raised the possibility of a breakthrough on the long-awaited £10 billion Crossrail train link through central London.

The Prime Minister admitted the need for major improvements had been brought to the fore by the threat of the capital losing its bid to host the 2012 Olympics.

Last week Olympic chiefs warned London it would lose out to Paris or Madrid unless the Tube, road and rail network was brought up to scratch.

Speaking on ITV's London Tonight this evening, Mr Blair will say that Crossrail and the East London line extension were "investments we can't afford not to make".

Though he did not say that Crossrail - which would link Heathrow with Stratford and Canary Wharf - would definitely be built, he said he was "committed" to the project and suggested a firm announcement will be made later this year.

He also recognised the importance of the £ 1billion East London line extension.

This would ease the flow of passengers to the Olympic village in Stratford and could easily be completed by 2012.

Mr Blair said: "There are issues about how we fund this [but] I don't think there is any question of us not doing them. These are investments we can't afford not to make."

He also said he was "cautiously optimistic" about the Olympic bid.