London could halve cost of new transport projects

London could halve the cost of major new transport projects by adopting a European model of planning and financing, a City Hall report has said.

Infrastructure projects in London are often more expensive than in other European cities, with the Jubilee line extension costing 10 times as much per mile compared to a similar project in Madrid.

The report, entitled Mind the Funding Gap, called on the mayor and TfL to restart work on Crossrail 2, which was paused after the government stopped funding during the Covid-19 pandemic.

It also said the capital needed to bring down delivery costs or face more projects getting stuck at the planning stage.

The report, published by the London Assembly Budget and Performance Committee, suggested planning and financing reform could help bring new projects into fruition.

This includes Crossrail 2, which would link National Rail networks in Surrey and Hertfordshire through a new underground tunnel in central London.The committee heard that Madrid's "low-cost and speedy approach" to its metro extension in the 1990s kept costs down through standardised, simplified station design.

Neil Garratt, who chairs the committee, said: "Delivering new transport infrastructure has wide-reaching benefits for London, Londoners, and the wider country, yet challenges remain with funding and spiralling development costs.

"London could deliver major infrastructure projects between 20 and 50% cheaper if we adopted some of the planning and financing processes in neighbouring countries."The report also asked City Hall for a clear timeline for transport developments until 2040, and a new strategy for funding infrastructure with private investment.

Transport for London (TfL) said it would respond to the report in due course, adding: "TfL has a wealth of experience in London of delivering transport infrastructure projects.

"Many of these have been unlocked through innovative financing agreements with the private sector, which we continue to consider for major projects on a case-by-case basis."