Asked by: Bob Blackman (Harrow East) Asked on: 08 December 2016 Department for Transport
To ask the Secretary of State for Transport, what representations his Department has received from (a) the Mayor of London and (b) Transport of London on the cost of the Croxley Rail Link; and whether the Government plans to provide additional funding to support the development of that link.
Answered by: Andrew Jones Answered on: 13 December 2016
Since taking over management of the Croxley Rail Link in November 2015, Transport for London (TfL) has been reviewing the main work contracts. From discussions between officials in the Department and in TfL, we are aware that, as a result of prices received from the supply chain, the costs of the scheme are currently higher than the agreed budget. We understand TfL is considering how best to deal with this.
At a meeting with the Mayor on 5 December the Secretary of State for Transport re-confirmed the importance that the Government attaches to the scheme which will deliver significant transport benefits and significantly boost economic growth in Watford and the wider north west London area. Indeed, the Government, together with local councils and the Local Enterprise Partnership, has already committed substantial funding to this scheme and nearly 85% of the total budgeted cost.
Under the terms of the funding agreement in place for the scheme, TfL committed to the agreed budget of £284.4m and so agreed to meet any costs incurred over that budget. Conversely, they would retain the full amount of any cost savings. The Department will not be providing any additional funding for the scheme and expects TfL to complete it as agreed.
Friday update:London Reconnections now has a (very) full report on what's going on. In brief, the project's finance was transferred last year to TfL's Growth fund, which is used to support housing development and regeneration in London, except the project's not in London, which is awkward, and its costs may just have risen by £70m, which is even more awkward, so TfL would really like to cancel the project, but they may not be allowed to, but they might anyway. Don't get your hopes up.