Recommendations & Conclusions
11 items
7
Conclusion
Twenty-Fourth - Crossrail: A progress u…
Acknowledged
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 …
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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 us that five of the nine central section stations have now been handed over, and that Paddington and Whitechapel would be handed over in the summer.15 Crossrail Ltd told us that Canary Wharf and Bond Street will be the final stations to be handed over.16 The NAO reported that Crossrail Ltd expects all stations, except Bond Street, to be handed over before Trial Operations begins. Bond Street will instead be completed to a safety standard that will allow Trial Operations to start. The NAO report also highlighted a risk that Bond Street may not be ready for the start of passenger services.17
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Government response AI summary
The government provides an update on the Elizabeth Line project, including the commencement of Trial Operations and updated timelines for the central section opening in the first half of 2022, thereby acknowledging the committee's observations on progress and risks.
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HM Treasury
9
Conclusion
Twenty-Fourth - Crossrail: A progress u…
Acknowledged
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 …
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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
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Government response AI 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.
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HM Treasury
11
Conclusion
Twenty-Fourth - Crossrail: A progress u…
Acknowledged
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 …
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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 has been delayed by up to two months.31 Funding
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Government response AI summary
The government acknowledges the conclusion by stating that Crossrail Ltd is taking steps to deliver the project within available funding, providing current figures for its forecast relative to the agreed funding packages.
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HM Treasury
12
Conclusion
Twenty-Fourth - Crossrail: A progress u…
Acknowledged
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 …
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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 borrow.32 This additional funding brought total funding for Crossrail Ltd to £15,790 million.33 To date, the Department has provided £2,875 million of loans to Crossrail Ltd to complete the Crossrail programme These loans are: £750 million to TfL in December 2018; £1,300 million to the GLA in December 2018; and an additional £825 million to GLA in December 2020. 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 23 Q 11 24 Q 14 25 C&AG’s Report, figure 11 26 Q 12 27 Qq 26, 45 28 Q26; C&AG’s Report, para 3.23 29 Qq 12, 27 30 C&AG’s Report, para 3.19 31 Elizabeth Line Committee, 15 July 2021, page 30, para 4.7 32 C&AG’s report, Appendix 3 para 3 33 Funding for Network Rail costs is agreed separately to funding for Crossrail Ltd. Total funding for the Crossrail programme is currently £18.8 billion – £15,790 million to Crossrail Ltd and £2,980 million to Network Rail. Total funding excludes the cost of new trains and depot. Crossrail: A progress update 11 could take up to 2043 for full repayment.34 The TfL loan is to be financed and repaid from TfL’s own revenues.35 The government has separately provided over £4 billion of loans to TfL during the COVID pandemic to support the continued running of services.36
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Government response AI summary
The government acknowledges the funding figures and states that Crossrail Ltd is working to deliver within available funding, with the current forecast £151 million above the December 2020 package but still within the broader £1.1 billion identified need.
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HM Treasury
14
Conclusion
Twenty-Fourth - Crossrail: A progress u…
Acknowledged
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 …
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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 open between February and June 2022 and will operate a shuttle service between Abbey Wood and Paddington.42
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Government response AI summary
The government confirms the Elizabeth line's opening timeline, stating the central tunnel will open in the first half of 2022, with full end-to-end services by May 2023.
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HM Treasury
16
Conclusion
Twenty-Fourth - Crossrail: A progress u…
Acknowledged
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 …
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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 the trap of past behaviours which is why it is presenting the opening date as a range.46 However, with the expected opening window of services fast approaching, passengers and businesses will need clarity on what Elizabeth line services will be available and when they will start in order to adequately prepare. 45 Committee of Public Accounts, Crossrail: progress review, Ninety second Report of Session 2017–19, HC 2004, 3 April 2019 46 Q 25 Crossrail: A progress update 13 2 Benefits and lessons learned from the programme Achieving the benefits
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Government response AI summary
The government acknowledges the need for clarity on the Elizabeth line opening date, stating that Crossrail Ltd and TfL have a communications strategy and will announce a specific opening date once there is complete certainty for safe and reliable operation.
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HM Treasury
17
Conclusion
Twenty-Fourth - Crossrail: A progress u…
Acknowledged
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 …
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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 parts of the railway.48 Crossrail Ltd estimates that the central section of the Elizabeth line will be open to passengers between February 2022 and June 2022.49 Our evidence session was in July 2021, some seven months before the earliest opening date.
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Government response AI summary
The government provides a general introduction to the Crossrail project, reiterating factual information about its construction, asset transfer, and operational plan, which aligns with the committee's observations.
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HM Treasury
20
Conclusion
Twenty-Fourth - Crossrail: A progress u…
Acknowledged
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 …
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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 Crossrail sites, such as 3,700 new homes at the Royal Arsenal site in Woolwich. The Department said it would do formal evaluations of Crossrail at two year and five year stages, and has set a baseline against which to measure some benefits.55 47 C&AG’s Report, Crossrail, Session 2013–14, HC 965, 24 January 2014, Figure 2 48 C&AG’s Report, para 10 49 Qq 10, 16 50 Q 75 51 C&AG’s Report, paras 4.2, 4.13. 52 Q 75 53 Q 72 54 Q 70 55 Q 74 14 Crossrail: A progress update
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Government response AI summary
The government acknowledges the importance of benefits management and confirms that a joint benefits management strategy, defining realised and expected benefits, is nearly complete and TfL plans to publish it before the central section of the Elizabeth line opens.
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HM Treasury
21
Conclusion
Twenty-Fourth - Crossrail: A progress u…
Acknowledged
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 …
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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 and regeneration requires sustained effort and vision over a long period, as well as buy in from local stakeholders.57 The Department told us that TfL was developing a full strategy which would be published in the summer, setting out the actions to help realise those benefits.58 Crossrail Ltd told us that the Elizabeth line has a 120 year design life and so there is “plenty of time and opportunity for people to come back to the Elizabeth line”.59 Learning lessons
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Government response AI summary
The government acknowledges the importance of a benefits management strategy and confirms that a joint strategy, to be owned by TfL, is nearly complete and scheduled for publication before the central section of the Elizabeth line opens in the first half of 2022.
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HM Treasury
22
Conclusion
Twenty-Fourth - Crossrail: A progress u…
Acknowledged
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 …
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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 about how programmes are progressing, and weaknesses in leadership and governance.60
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Government response AI summary
The government states it is developing a lessons management approach across government and has a comprehensive programme underway to embed these lessons in major transport infrastructure projects, with a progress update provided to the Committee via letter.
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HM Treasury
23
Conclusion
Twenty-Fourth - Crossrail: A progress u…
Acknowledged
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 …
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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 increases on the Crossrail programme in July 2018: Lessons learned from transport for the sponsorship of major projects.61 The Department repeated that as well as the lessons learned report, it has run an “extensive project development improvement plan” across the Department. It told us that the plan aims to strengthen the Department’s capability, governance, culture and transparency. It also said that it had shared its plan with colleagues across government through an infrastructure steering group.62
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Government response AI summary
The government states it is at the forefront of developing a lessons management approach across government, with a comprehensive programme underway to embed lessons, and has updated the Committee via letter.
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HM Treasury