9 Acknowledged

The £1.9 billion estimated cost increase consisted of £1,510 million of Crossrail Ltd costs, and...

Conclusion
The £1.9 billion estimated cost increase consisted of £1,510 million of Crossrail Ltd costs, and £390 million of Network Rail costs. Schedule delay was the largest category of cost increase of Crossrail Ltd costs, accounting for £934 million. This was followed by £228 million of COVID-19-related costs.22 However, Crossrail Ltd told us that COVID-19 10 C&AG’s Report, para 3.17 11 C&AG’s Report, para 19, 3.17; Committee of Public Accounts, Completing Crossrail, One Hundred and Ninth Report of Session 2017–19, HC 2127, 19 July 2019 12 C&AG’s Report, para 3.17 13 Q 8 14 Q 28 15 Abbey Wood was not included in this list of central section stations as it is being delivered by Network Rail. 16 Q 7 17 C&AG’s Report, para 3.14 18 Committee of Public Accounts, Completing Crossrail, One Hundred and Ninth Report of Session 2017–19, HC 2127, 19 July 2019; Q 19 19 Q 19–22 20 C&AG’s Report, para 11 21 Values have been rounded and are in cash prices 22 C&AG’s Report, figure 8 10 Crossrail: A progress update did not impact on the programme schedule as it was able to recover the lost time.23 The Department told us the £390 million increase in Network Rail costs was due to historical issues, such as adding previously missing scope; impacts of the Carillion liquidation which took time and money to re-tender contracts; and lower than expected productivity of contractors.24
Government Response Summary
The government states it agrees with the committee's conclusion and provides an update on the programme's progress, current cost forecast, and schedule, noting Crossrail Ltd supplied the committee with revised cost and schedule estimates as of November 2021.
Government Response
Acknowledged
HM Government Acknowledged
1.1 The government agrees with the Committee’s recommendation. Recommendation implemented 1.2 Delivery of the Elizabeth line is now in its final complex stages. Significant progress has been made across the project. The penultimate stage, Trial Operations, commenced on 20 November 2021 as part of the major railway trials taking place ahead of the Elizabeth line opening. 1.3 The central section between Paddington and Abbey Wood will open in the first half of 2022; with a target date for services from the east and west connecting to the central section in autumn 2022, and full end to end services delivered between December 2022 and May 2023. 1.4 Crossrail Ltd is taking steps to deliver Crossrail within the available funding. Crossrail’s current forecast is currently £151 million above the £825 million funding package agreed in December 2020. The programme remains within the £1.1 billion of additional funding identified as necessary by the outgoing Crossrail board announced in August 2020, which the Commissioner has committed to staying within. 1.5 On 12 January 2022, Mark Wild, CEO of Crossrail Ltd wrote to the Committee providing an update on the latest programme plan and the revised forecast cost for the whole programme, and opening date for the central section and the entire railway. Crossrail Ltd provided the information in a similar format to that presented in Figure 11 of the National Audit Office report. The cost and schedule estimates are accurate as of November 2021.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 4.7 yrs
Report published 29 Oct 2021