Chiefs sell London Crossrail for Economic and Regional Benefits

London Crossrail – touted as Europe's biggest ever construction project – will bring in a minimum of £16bn growth to the UK GDP as well as an equal bonus to the construction industry, project chiefs insist.

The project, which will link key business centres in the UK between Maidenhead and Shenfield, will provide new passenger capacity of 1.5 million, easing congestion for commuters travelling between London's commercial heartlands when it opens in 2017.

The benefit of this extra capacity, according to Colin Buchanan, the consultancy contracted to estimate the project's value, will be felt right through the economy.

Colin Buchanan director Paul Buchanan told a New London Architecture event on 10 December the benefit-cost-ratio (BCR) of Crossrail is exceptionally high.

"The agglomerated benefits of Crossrail to the economy makes this project very worthwhile," Buchanan said.

Colin Buchanan figures show Crossrail will cost an estimated £16bn to operate and maintain over the next 60 years – most of which will come from government funding. Of this, £6bn is estimated to be made back in revenues while $1bn will be lost through tax fluctuations, predominantly in the fuel price.

Colin Buchanan also said Crossrail is expected to create about £16bn worth of user benefits – £5bn for business and £11bn for leisure.

The consultancy, however, didn’t have any information on how business, which may be levied up to 2p to pay for the Crossrail project under the new Business Rates Supplements Bill, will see dividends from Crossrail.

Business chiefs have spoken out against the Bill, which forms part of the government's legislative programme for the year, saying taxes should not be raised given that project benefits will not be seen until 2017.

The Confederation of British Industry director general John Cridland said that "although additional funding is needed for big infrastructure projects, such as Crossrail, the middle of an economic slump is not the time to bring in new powers to raise tax more widely from business".

"Firms are likely to be saddled with a potential £1bn annual tax increase without a proper say in the process."

The overall estimated benefit cost ratio is 1.8 which, according to the consultancy, is above the average ratio of less than one for most transport projects.

Along with improving access to transport, Crossrail chiefs say it will generate better integration of London's other core services as well as spark regeneration in other regional hubs, most notably in the Thames Gateway region.

Westminster City council Head of City Planning Strategic Schemes Graham King said benefits from Crossrail will be seen throughout the entire UK.

"Transport is the lifeblood of London's Economy, which in turn is the heart of England's Economy," King said.

"Improving rail will be of benefit to all."

The new Crossrail lines will run 118km from Maidenhead and Heathrow in the west, through new twin-bore 21km tunnels under central London. It will provide improved access to economic centres such as Paddington, Bond Street, Tottenham Court Road, Liverpool Street and Canary Wharf.

By Daniel Garrun.