The Mayor of London, Transport for London (TfL), the Department for Transport (DfT) and the treasury have agreed a funding and financing package for the final phase of Crossrail.

Back in August Crossrail Ltd said it was now hoping to open the central section of the Elizabeth Line in the first half of 2022 and that this would require extra funding beyond the agreed funding envelope.

Crossrail Ltd is working to reduce the funding shortfall. Initially the shortfall will be covered by the Greater London Authority, which will borrow up to 825 million GBP from the DfT, which it will then hand over to TfL as a grant. The Greater London Authority will repay the funds from Business Rate Supplement and Mayoral Community Infrastructure Levy revenues.

The 825 million GBP loan is split into a 500 million GBP loan with a fixed repayment profile and a 325 million GBP loan that will be repaid subject to the relevant revenues. The government must make some legislative changes to enable this borrowing, which it says it will do.

TfL meanwhile is ensuring that additional independent analysis of costs takes place.