Recommendations & Conclusions
24 items
2
Conclusion
Twenty-Fourth - Crossrail: A progress u…
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 …
Government response. agree with the Committee’s conclusion. The department assesses the value for money of all its investments. Value for money is evidenced and scrutinised at key approvals and assurance milestones and all programmes in the Government Major Programmes Portfolio must comply …
HM Treasury
3
Conclusion
Twenty-Fourth - Crossrail: A progress u…
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 line (under the brand name ‘TfL Rail’) since June 2017 …
Government response. agree with the Committee’s conclusion. The department recognises the importance of managing supplier performance including the apportionment of financial and programme risk. CAAS (Cost Assurance & Analysis Service) Approvals Team help define specific estimating and scheduling evidence requirements to underpin …
HM Treasury
4
Recommendation
Twenty-Fourth - Crossrail: A progress u…
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 connectivity and be a fully accessible railway. TfL expects the …
Government response. agree with the Committee’s conclusion. The department has a track record of delivering savings; the underlying cost of the Defence Equipment & Support (DE&S) managed element of the Equipment Plan has reduced by £5.4 billion since 2015, excluding Foreign Exchange …
HM Treasury
5
Conclusion
Twenty-Fourth - Crossrail: A progress u…
The Department has still not demonstrated that it is embedding lessons learned into its major programmes. This Committee has examined many major transport programmes, such as HS2, Great Western route modernisation and Thameslink, many of which have had significant problems in their delivery. We have told the Department many times …
Government response. 5.2 The department is at the forefront of work across government to develop a lessons management approach in conjunction with its delivery partners following the 2019 ‘Lessons from Transport for the Sponsorship of Major Projects’ report. A comprehensive programme of …
HM Treasury
1
Conclusion
Twenty-Fourth - Crossrail: A progress u…
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. Introduction from the Committee Crossrail is a complex major programme to run new, direct rail services between Reading and Heathrow Airport at the western ends of the railway, to Shenfield in Essex and Abbey Wood in south-east London at the …
HM Treasury
6
Conclusion
Twenty-Fourth - Crossrail: A progress u…
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 previous challenges with software in our Completing Crossrail report.11 The …
Government response. agree with the Committee’s conclusion. The £16.5 billion extra funding from Spending Review 2020 will support the aims and priorities outlined in the Integrated Review to better counter developing and future threats. Further detail and a breakdown of the £16.5 …
HM Treasury
7
Conclusion
Twenty-Fourth - Crossrail: A progress u…
Crossrail Ltd is constructing stations along the central section which are then handed over to the eventual infrastructure maintainer - Rail for London Infrastructure (RfLi) or London Underground. TfL told us that completing the stations is on the critical path to opening the central section to passengers.14 Crossrail Ltd told …
HM Treasury
8
Conclusion
Twenty-Fourth - Crossrail: A progress u…
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 been reported separately.19 The estimated cost has increased because the …
Government response. 2021. This is the government’s response to the Committee’s report. Relevant reports • NAO report: Investigation into the British Business Bank’s accreditation of Greensill capital – Session 2021-22 (HC 301) • PAC report: Lessons from Greensill Capital: accreditation to business …
HM Treasury
9
Conclusion
Twenty-Fourth - Crossrail: A progress u…
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 …
HM Treasury
10
Conclusion
Twenty-Fourth - Crossrail: A progress u…
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 of £15,790 million. The middle estimate was £15,910 million which …
Government response. 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 …
HM Treasury
11
Conclusion
Twenty-Fourth - Crossrail: A progress u…
TfL told us that further funding may not be needed if the railway is opened earlier and everything goes to plan.29 By July 2021, Crossrail Ltd expected to have updated its plans to reflect progress and risks remaining, which would inform its range of potential opening dates and costs.30 This …
Government response. 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 …
HM Treasury
12
Conclusion
Twenty-Fourth - Crossrail: A progress u…
In August 2020, Crossrail Ltd announced that up to £1.1 billion of further funding would be needed to complete the programme. In December 2020, the government agreed to loan the Greater London Assembly (GLA) £825 million to complete the programme, which represented the limit of what the GLA could prudently …
Government response. 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 …
HM Treasury
13
Conclusion
Twenty-Fourth - Crossrail: A progress u…
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 had caused revenues to collapse because ridership had collapsed. At …
Government response. 2.2 Elizabeth line passenger forecasts have been updated and considered against the COVID-19 pandemic recovery scenarios which were generated for Transport for London (TfL) as a whole and outlined in TfL’s Financial Sustainability Plan of January 2021. Some of the …
HM Treasury
14
Conclusion
Twenty-Fourth - Crossrail: A progress u…
The Elizabeth line services will open in stages as different part of the line are completed. Services have been running on the eastern and western ends of the line (under the brand name ‘TfL Rail’) since June 2017 and May 2018, respectively.41 Crossrail Ltd expects the central tunnelled section to …
Government response. 3.3 All external communication is clear that the opening window for the Elizabeth line continues to be the first half of 2022. This marks the point at which the central tunnel opens to passengers from Abbey Wood to Paddington. The …
HM Treasury
15
Conclusion
Twenty-Fourth - Crossrail: A progress u…
Once the central section opens, commuters must still change to other Elizabeth line services to continue their journeys on the eastern and western ends. The opening of full east-west services must align with national rail timetable changes which take place in May and December each year. TfL told us it …
Government response. 3.3 All external communication is clear that the opening window for the Elizabeth line continues to be the first half of 2022. This marks the point at which the central tunnel opens to passengers from Abbey Wood to Paddington. The …
HM Treasury
16
Conclusion
Twenty-Fourth - Crossrail: A progress u…
In April 2019 we reported that the Department, TfL and the previous Crossrail Ltd management team had focussed on a fixed delivery date of December 2018, which led to warning signs that programme was in trouble being missed or ignored.45 The Department told us that it was not falling into …
Government response. 3.2 Crossrail Ltd and TfL have a clear and comprehensive communications strategy in place to ensure that the public who will benefit from the new railway are aware of when and what Elizabeth line services will be open. Certainty on …
HM Treasury
17
Conclusion
Twenty-Fourth - Crossrail: A progress u…
Construction work on the programme started in 2009 and tunnelling began in 2012.47 The majority of major construction work is complete and Crossrail Ltd is now transferring assets, such as stations, to Rail for London Infrastructure (RfLi) and London Underground who, along with Network Rail, will maintain and operate different …
Government response. Introduction from the Committee Crossrail is a complex major programme to run new, direct rail services between Reading and H Heathrow Airport at the western ends of the railway, to Shenfield in Essex and Abbey Wood in south-east London at …
HM Treasury
18
Conclusion
Twenty-Fourth - Crossrail: A progress u…
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 the last published business case in 2011.51 TfL explained that …
HM Treasury
19
Conclusion
Twenty-Fourth - Crossrail: A progress u…
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 Tier 1 contractors, and Crossrail Ltd does not know where …
HM Treasury
20
Conclusion
Twenty-Fourth - Crossrail: A progress u…
The Department told us that Crossrail had completed a property and regeneration study looking at 2008 to 2016 which identified some 90,000 homes and four million square feet of office space resulting from Crossrail. It also noted plans in place for 12 major developments around the Elizabeth line stations and …
Government response. 4.2 Benefits management is important to ensure that the benefits are defined, measured, and optimised. Industry approach and best practice to benefits management has developed and matured significantly throughout the lifetime of the Crossrail project. 4.3 The department and TfL …
HM Treasury
21
Conclusion
Twenty-Fourth - Crossrail: A progress u…
The NAO report sets out what it would expect to see in place to achieve benefits. It reported that the Department and TfL did not have a clear overarching benefits management strategy or plan for the Elizabeth line, but had started work on one since its fieldwork.56 Local economic growth …
Government response. 4.2 Benefits management is important to ensure that the benefits are defined, measured, and optimised. Industry approach and best practice to benefits management has developed and matured significantly throughout the lifetime of the Crossrail project. 4.3 The department and TfL …
HM Treasury
22
Conclusion
Twenty-Fourth - Crossrail: A progress u…
We have examined many major transport programmes over the years, including modernising the Great Western railway, the Sheffield to Rotherham tram-train, the Thameslink programme, the A303 Stonehenge tunnel, High Speed Two and Crossrail. We have seen common issues around programmes not keeping to cost or schedule, a lack of transparency …
HM Treasury
23
Conclusion
Twenty-Fourth - Crossrail: A progress u…
We have asked the Department for the lessons it has learned from these experiences on several different occasions and we asked again at this session in July. The Department referred again to the report it had produced with the Infrastructure and Projects Authority, following the announcement of delays and cost …
Government response. 5.2 The department is at the forefront of work across government to develop a lessons management approach in conjunction with its delivery partners following the 2019 ‘Lessons from Transport for the Sponsorship of Major Projects’ report. A comprehensive programme of …
HM Treasury
24
Conclusion
Twenty-Fourth - Crossrail: A progress u…
The Department also referred to the lessons it and HS2 Ltd have learnt from the difficulties Crossrail had in integrating the 36 main works contracts and ensuring that they work together. Informed by the Crossrail experience, at our June 2021 session on HS2, HS2 Ltd and the Department told us …
Government response. 5.2 The department is at the forefront of work across government to develop a lessons management approach in conjunction with its delivery partners following the 2019 ‘Lessons from Transport for the Sponsorship of Major Projects’ report. A comprehensive programme of …
HM Treasury