Crossrail 2 An essential piece of national infrastructure

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1 Crossrail 2 An essential piece of national infrastructure

2 What is Crossrail 2? A proposed new railway serving London and the South East, Crossrail 2 would run underground between Wimbledon and Tottenham Hale and New Southgate, connecting with existing National Rail networks in Surrey and Hertfordshire. Crossrail 2 would transform travel in the region, improve connectivity throughout the UK and support other major national transport projects, such as HS2. It is an important part of a national programme of transformational infrastructure investment which will provide for a prosperous and productive future for the whole country. Crossrail 2 would be an essential piece of this programme, unlocking tens of thousands of new jobs and homes, and driving economic growth across the UK. For the capital to remain globally competitive there needs to be continued investment in our transport network and that s why we have to get cracking on planning for Crossrail 2. Boris Johnson, Mayor of London Why do we need Crossrail 2? Cities increasingly rely on their transport systems and London is no exception. For more than 150 years the rail and Underground network has connected people with homes, jobs, services and all that the capital has to offer, creating economic prosperity for the benefit of the whole nation. As a city expands, it s vital that its infrastructure grows with it. London s population is set to soar from 8.6 million today to more than 10 million by 2030 equivalent to the population of Birmingham. An extra 1.4 million people will mean five million more journeys each day, on top of the 26 million daily trips already taking place on the capital s network. Driving future prosperity This rise in demand will inevitably put pressure on London s transport systems and its already squeezed housing supply. We must, therefore, invest in infrastructure projects like Crossrail 2 to increase capacity and unlock areas where new homes, jobs and communities can be created. If we delay our investment, it could jeopardise housing targets and slow job creation, putting the brakes on future growth. Investment already under way such as Crossrail 1, Thameslink and the Tube upgrades will relieve overcrowding in the coming years, but as London contines to grow, congestion will return. New transport infrastructure takes a long time to plan, design and build, so work to develop Crossrail 2 needs to start now. This is the only way it can be engineered ready for construction to start in the early 2020s and services to begin in London s population is set to soar from 8.6 million today to more than 10 million by

3 Maintaining the UK s position as a global centre of trade Unlocking good quality homes to address London s housing crisis Cities are the economic powerhouses of any nation and this is especially true of London and the UK. As the country s global city, it attracts foreign direct investment and is responsible for almost 25 per cent of our national GDP. By 2035, the capital is projected to generate a tax revenue surplus of 159bn* a year and the whole of the UK will benefit. However, this can only be achieved if businesses have access to a large pool of talented labour. Commuter rail services into the capital are heavily congested and the Tube is carrying more passengers than ever. We are already upgrading our Underground and rail networks, improving roads, running more buses and better integrating the rail network, as well as encouraging journeys by walking and cycling. But we also need new infrastructure to relieve bottlenecks, for instance at Waterloo and Liverpool Street stations, and significantly boost transport capacity. For this reason, Crossrail 2 is an essential part of both Transport for London and Network Rail s future plans. Bringing commuters closer Crossrail 2 would increase central London s rail capacity by more than 10 per cent (90,000 passengers per hour). This would bring hundreds of thousands more people within a one hour commute of vital employment centres across the city, maintaining the capital s attractiveness as a global investment centre. Business leaders agree that this investment is needed nine out of 10 strongly support or support Crossrail 2. A clear commitment to the project in the Comprehensive Spending Review would give the private sector the confidence to continue investing in London for the long term, which would be good news for the economy. By 2035, the capital is projected to generate a tax revenue surplus of 159bn* a year and the whole of the UK will benefit. The high cost of living and shortage of good quality housing at prices and rents people can afford is widely recognised as one of the biggest threats to the capital s success. Families on low incomes have limited access to homes near transport links that allow them to get to jobs, while young people struggle to get on the housing ladder and companies are finding it increasingly hard to retain talented staff. Crossrail 2 would breathe life into new areas of the capital, for instance the Upper Lea Valley, enabling and potentially accelerating the development of up to 200,000 new homes with ready-made access to skilled jobs and opportunities across London. New transport infrastructure is essential to unlocking opportunity areas and the housing developments the capital so desperately needs. London s housing crisis is damaging to UK competitiveness and eroding the agglomeration benefits that are an important factor in London s international success. Crossrail 2 is a vital part of the solution, helping to open up potential areas for future development. London Chamber of Commerce and Industry Crossrail 2 would breathe life into new areas of the capital potentially accelerating the development of up to 200,000 new homes. * London s Finances and Revenues, Centre for Economics and Business Research (Cebr), 4 5

4 The safeguarded route The route map below shows where Crossrail 2 stations could be located. No station or infrastructure locations have been finalised and more information will be shared with the public during a consultation planned for autumn ENFIELD New Southgate Key Alexandra Palace BARNET HARROW HARINGEY Stations Tottenham Hale Turnpike Lane London Underground Seven Sisters London Overground WALTHAM FOREST National Rail REDBRIDGE Tramlink Core tunnel portal HACKNEY CAMDEN Safeguarded central core of route Regional scheme - possible options Cheshunt Euston St. Pancras HILLINGDON EALING Alexandra Palace Turnpike Lane Seven Sisters Tottenham Hale HOUNSLOW Euston St. Pancras Hackney Central Angel Tottenham Court Road King s Road Chelsea Victoria Wimbledon Hampton Wick es SOUTHWARK Clapham Junction WANDSWORTH Tooting Broadway LEWISHAM Kingston MERTON Motspur Park Surbiton 6 CITY OF LONDON ham er T Riv Wimbledon Tooting Broadway Kingston Motspur Park NEWHAM LAMBETH RICHMOND UPON THAMES Twickenham TOWER HAMLETS GREENWICH Twickenham Clapham Junction Hackney Central Victoria King s Road Chelsea H IT SM ER HAM MMUL HA& F Dalston Junction ON GT A IN SE NS EL KE CH & Tottenham Court Road New Southgate Epsom Angel WESTMINSTER TfL Road network Surbiton Dalston Junction BRENT Safeguarded option for a future eastern branch Hampton Wick ISLINGTON KINGSTON UPON THAMES BROMLEY CROYDON 7

5 Creating opportunities across the UK Crossrail 2 would benefit cities across the South East such as Cambridge, Portsmouth and Southampton by freeing up mainline rail routes into Waterloo and Liverpool Street. This would enable these cities to prosper while supporting the whole of the region and better connecting the UK s employment centres. It is also vital to realise the benefits of projects such as HS2, supporting long-term growth in the Midlands and North. Without Crossrail 2, passengers travelling from Manchester to London in just over an hour would have to spend the time they ve saved waiting for crowded Tube trains to take them to their destination. Investment in major new transport infrastructure projects such as Crossrail 2 would mean a stronger London and a stronger UK. Providing value for the taxpayer Crossrail 2 would give businesses the confidence to invest in jobs, skills and innovation. Investing in industry In addition, Crossrail 2 would be part of a vital infrastructure pipeline that would create orders up and down the country, giving firms the confidence to invest in jobs, skills and innovation. Crossrail 1 is generating enough work to support 55,000 jobs nationwide and creating a legacy of apprenticeships and training. This new railway would build on that and ensure the UK s newly developed skills base such as that created through the Tunnelling and Underground Construction Academy in Ilford, East London does not go to waste. Supporting the UK economy We work with tens of thousands of suppliers across the UK. The TfL and Crossrail 1 supply chain alone supports nearly 60,000 jobs outside the capital. Crossrail 2 is estimated to cost approximately 27bn in today s prices. This includes new trains and National Rail improvements that are required even if the railway does not go ahead, and providing for possible risks. Alternatives have been considered to address particular challenges, but piecemeal interventions would be costly, cause significant disruption and would not have the same transformational impact. Funding now, confidence for the future Crossrail 1 generated significant wider funding sources, as would this new railway. There is a strong business case for building Crossrail 2 and it is clear that taxpayers would see a significant return on any investment. Development funding now would drive forward vital work so the project can be designed and planned, ready for construction to start by the early 2020s. Conversely, stop-start investment would add costs and affect long-term growth. Crossrail 2 is a major infrastructure project with the potential to attract significant local funding contributions. London First London has a strong track record of developing innovative funding packages for major infrastructure projects to minimise general taxpayer contributions. To demonstrate how Crossrail 2 could continue this trend and be affordable to the UK taxpayer, we appointed PwC to carry out an independent funding and financing feasibility study*. This showed London could shoulder more than half the cost of building the scheme using existing funding sources, as it is doing for Crossrail 1. North East Crossrail awarded 25 contracts to firms in the North East, including specialists in borehole drilling, engineering lubricants and waste removal. Crossrail 2 would provide new opportunities, supporting jobs around the UK A breakdown is shown below; it illustrates how local funding sources would minimise Government contributions the usual source of funding for most major UK infrastructure projects. Funding mechanisms Midlands and the North Connecting Crossrail 2 with HS2 at Euston would make journeys around the UK faster and easier, and would support long-term growth across the country Derby Business rate supplement Enhanced Mayoral Community Infrastructure Levy 49.8% South East The 36,000 people who arrive into London Waterloo every hour in the peak would benefit from increased resilience and reliability on the South West Main Line % London Stansted Cambridge Corridor There would be improved connections to, from and between locations in one of the UK s fastest developing science and technology clusters, home to more than 1,400 businesses Project generated revenue 20% Thousands of jobs in Britain s rail industry manufacturing centre would be secured Resale of land and property Doubling of Mayoral Community Infrastructure Levy 5.8% Council tax precept Balance 5.8% 1.9% 1.5% *Crossrail 2 Funding and financing study, PwC, 9

6 72km of tunnels Additional capacity for up to 270,000 more trips into and across the capital in the three-hour peak period Unlocks the potential for up to 200,000 new homes 96% of consultation respondents support the project (more than 13,700 responses) 250 metre trains able to hold 1,500 passengers each Adds 10% to central London s rail capacity Up to 30 trains per hour in each direction through central London More than 13.5bn of the cost could come from local sources Next steps Work to progress Crossrail 2 is accelerating and will hit a series of milestones this year. The safeguarded route (a revision of the Chelsea-Hackney line) was confirmed in March, an updated business case will be submitted to Government this summer and we will launch a consultation on more detailed proposals in the autumn. Work is currently under way to establish a single preferred route, develop station designs and carry out environmental appraisals. We are also continuing to assess the case for Crossrail 2 and find ways to reduce risks and uncertainties, including working with local authorities to establish plans for areas that will benefit. Development funding is needed in this summer s Comprehensive Spending Review to drive forward this vital work. Crossrail 2 is not guaranteed to go ahead but Government investment now would allow us to move forward at pace and unlock jobs, homes and long-term growth. Over the coming months we will continue to work with our stakeholders and the public to make the case for this essential piece of national infrastructure, developing the scheme to maximise its benefits at a local and strategic level. London s rapid population growth provides an opportunity that we must grasp if we are to deliver huge long-term returns and support other major UK infrastructure projects. For more information, visit It is a project that has long been discussed I remember people talking about the Chelsea to Hackney Tube line when I was a kid. Now we need to look at how to get the idea off the page and into construction. George Osborne, Chancellor of the Exchequer Investment now would allow us to move forward at pace and unlock jobs, homes and long-term growth. Safeguarded route confirmed Comprehensive Spending Review Public consultation Single preferred option Submit powers application Start construction First Crossrail 2 service March 2015 Summer 2015 Autumn

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