Twenty-Fourth - Crossrail: A progress update

Select Committee

Public Accounts Committee HC 184 29 October 2021

Report Status Government responded

Conclusions & Recommendations 24 items (6 recs)

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Government Response (AI assessment · 23 of 24 classified)

Accepted 3

Acknowledged 11

Not Addressed 9

Government response

Treasury minutes: Government response to the Committee of Public Accounts on the Twenty Fourth report from Session 2021-22 · published 21 Jan 2022

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Recommendations & Conclusions

10 results

2 Recommendation Not Addressed

The collapse in passenger numbers owing to the pandemic, and subsequent bailout to TfL, has...

Recommendation

The collapse in passenger numbers owing to the pandemic, and subsequent bailout to TfL, has complicated how and when TfL and the Greater London Authority will be able to repay the taxpayer loans for Crossrail. To date, the taxpayer has … Read more The collapse in passenger numbers owing to the pandemic, and subsequent bailout to TfL, has complicated how and when TfL and the Greater London Authority will be able to repay the taxpayer loans for Crossrail. To date, the taxpayer has provided nearly £2.9 billion in loans to TfL and the Greater London Authority (GLA) to fund Crossrail Ltd’s costs on the programme: £750 million to TfL in December 2018; £1,300 million to the GLA in December 2018; and an additional £825 million to the GLA in December 2020. However, this funding may still not be enough, with Crossrail Ltd’s middle estimate cost of the programme in July 2021 (£15,940) coming in £150 million above its current available funding, thus potentially creating a shortfall. The Department expects the £750 million loan to TfL for Crossrail to be financed and repaid from TfL’s own revenues. This loan is separate from over £4 billion of loans from government to support TfL during COVID. Fare revenue is critical to TfL’s finances. Prior to the pandemic, TfL said it received 72% of its income from fares however passenger numbers were plateauing before the pandemic, and have since collapsed. There may be long-term changes to travel patterns, with TfL estimating an 18% drop in demand for rail by 2031 compared with what was expected before the pandemic. Government lending to TfL during the pandemic includes a target to become financially self-sufficient within two years, meaning TfL must identify new revenue streams. The GLA loans are expected to be paid back via London’s Business Rate Supplement (BRS) and Mayoral Community Infrastructure Levy (MCIL), with the Commissioner telling us it could take up to 2043 for full repayment. 6 Crossrail: A progress update Recommendation: The Department and TfL should write to the Committee by the end of November setting out TfL’s revenue forecast scenarios, and what they mean for whether the loans for Crossrail will be fully repaid and when. Show less

Government Response Summary

The government agrees with the committee's general conclusion but does not commit to providing TfL’s revenue forecast scenarios or their implications for Crossrail loan repayment by the requested deadline. Instead, it describes its general value for money assessment processes and commitments for future letters.

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3 Recommendation Not Addressed

It is not clear to passengers and businesses when the Elizabeth line will open or...

Recommendation

It is not clear to passengers and businesses when the Elizabeth line will open or what services will be available. The Elizabeth line services will open in stages. Services have been running on the eastern and western ends of the … Read more

Government Response Summary

The government's response discusses managing supplier performance, financial and programme risk, and contract mechanisms, which does not address the recommendation for a clear public communication strategy regarding Elizabeth Line service openings.

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4 Recommendation Not Addressed

We are concerned that TfL and the Department do not have a plan to maximise...

Recommendation

We are concerned that TfL and the Department do not have a plan to maximise the long-term, wider economic benefits of Crossrail. When open, the Elizabeth line should increase capacity in central London by around 10%, reduce journey times, improve … Read more

Government Response Summary

The government's response discusses the Ministry of Defence's track record on delivering savings and improving programme delivery, failing entirely to address the recommendation for TfL and the Department to publish a plan for maximising Crossrail's long-term economic benefits.

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1 Conclusion Not Addressed

On the basis of a report by the Comptroller and Auditor General, we took evidence...

Conclusion

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Transport (the Department), Transport for London (TfL) and Crossrail Ltd on progress with the Crossrail programme.1

Government Response Summary

The government response serves as an introduction to its overall response, providing background on the Crossrail project and the committee's report, rather than directly addressing the conclusion which merely states the committee took evidence.

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6 Conclusion Not Addressed

A significant software update is needed to begin Trial Operations, which will allow up to...

Conclusion

A significant software update is needed to begin Trial Operations, which will allow up to 24 trains an hour to run through the central section.10 Any unexpected issues with software may take time to fix and we have reported on … Read more

Government Response Summary

The government response states agreement with the conclusion but then discusses defense spending and equipment plans, which does not address the conclusion regarding Crossrail software updates and trial operations.

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8 Conclusion Not Addressed

The estimated cost of Crossrail has increased by £1.9 billion since we last reported and...

Conclusion

The estimated cost of Crossrail has increased by £1.9 billion since we last reported and now stands at £18.9 billion.18 This excludes the £1.1 billion cost of the new trains and the depot at Old Oak Common which have historically … Read more

Government Response Summary

The government's response lists unrelated reports on Greensill Capital and completely fails to address the committee's conclusion regarding Crossrail's cost increases.

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10 Recommendation Not Addressed

At May 2021, Crossrail Ltd estimated that its cost to complete the programme would be...

Recommendation

At May 2021, Crossrail Ltd estimated that its cost to complete the programme would be between £15,820 million and £16,008 million, with a middle value of £15,910 million. This was between £30 million and £218 million above the current funding … Read more

Government Response Summary

The government's response provides an update on Crossrail's overall funding status, but it does not address the specific recommendation for Crossrail Ltd to end expensive Tier 1 contracts to control costs.

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13 Conclusion Not Addressed

TfL told us that it is over-reliant on income through the farebox which accounts for...

Conclusion

TfL told us that it is over-reliant on income through the farebox which accounts for 72% of TfL income. TfL compared this to New York City Transit which received 38% of its income from fares.37 It told us that COVID … Read more

Government Response Summary

The government's response discusses updated Elizabeth line passenger forecasts and the impact of the COVID-19 pandemic on ridership, but does not address the committee's conclusion about TfL's over-reliance on farebox income or the need to diversify revenue streams.

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18 Conclusion Not Addressed

The Department and TfL told us that, when the Elizabeth line opens, they expect it...

Conclusion

The Department and TfL told us that, when the Elizabeth line opens, they expect it to increase rail capacity in central London by around 10%, reduce journey times, and be fully accessible.50 These were the transport benefits set out in … Read more

Government Response Summary

The government's response details its communications strategy regarding the Elizabeth line's opening dates and phases, but does not address the committee's observations about the expected transport and economic benefits.

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19 Conclusion

The Department and Crossrail Ltd told us about the benefits Crossrail has achieved during construction.

Conclusion

The Department and Crossrail Ltd told us about the benefits Crossrail has achieved during construction. Crossrail Ltd told us that Crossrail had “overreached” on its apprenticeship targets, achieving 1,000 apprenticeships. Many of the 1,000 were in civil engineering in the … Read more

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