Emergency finance is needed after the opening of Crossrail was pushed back to autumn 2019 earlier this year, after a series of setbacks caused delays.
This has blown a hole in Transport for London’s finances, both in lost revenue and extra cash needed to finish the project.
Crossrail is now running £590m over budget and nine months late. To keep up construction momentum the Government today agreed the short-term loan to the Mayor for the year 2018/19.
Also TfL and the Department for Transport have commissioned an independent review of Crossrail’s governance and a separate review on Crossrail’s finance and commercial position.
Announcing the move, Rail Minister Jo Johnson, said: “Discussions between TfL and government are underway as to how any additional funding will be provided, with London – as the primary beneficiary of Crossrail – bearing any additional costs via a financing arrangement.”
Gareth Bacon, Chairman of the London Assembly Budget and Performance Committee, said: “The public will be dismayed that yet again mismanagement of this project has meant an extra injection of taxpayers’ money, which TfL will have to pay back.
“While we welcome the decision to enable the project to go forward as soon as possible, Transport for London and the Mayor have serious questions to answer about the shambles that is unfolding.”