On May 16, 2:07*pm, Mwmbwls wrote:
As the infalliable "Great Helmsman" has just given away £2.7 billion
in an unfunded pre electoral inducement - I believe, if you listen
carefully, we will hear the brakes going on public spending very
shortly. With a packed investment agenda already filled by Crossrail
and the Olympics, Bexley's hopes of Boris and Boris's hopes of further
central funding, however sensible they might be, may be in vain.

http://www.guardian.co.uk/politics/2...ansport.london
quote
Cash shortfall threatens London's tube upgrade
Dan Milmo and Matthew Taylor
The Guardian,
Monday May 19 2008
Boris Johnson faces a funding crisis which threatens to paralyse
London's public transport system and overshadow his term as the
capital's mayor, according to sources close to the financial
negotiations.
Senior transport figures say the £16bn Crossrail project, an
underground rail link from Heathrow in the west to Canary Wharf in the
east, will stifle investment in the ageing tube network, meaning a
number of station revamps and line upgrades could be postponed or
cancelled.
According to City Hall insiders, Johnson, who was criticised for his
lack of experience managing large-scale projects during the mayoral
campaign, has yet to get to grips with funding problems. Speculation
within transport industry circles is putting the potential funding
hole at up to £5bn.
Tony Travers, director of the Greater London group at the London
School of Economics, said the consequences of such a big shortfall
could be disastrous. "It could create serious problems for the new
mayor and for efforts to modernise London's antique transport system,"
he said. "Worse, it is increasingly unclear who is responsible for any
shortcomings, Gordon Brown, Ken Livingstone [Johnson's predecessor] or
Boris Johnson."
Johnson faces going cap in hand to the Treasury or pushing through a
rise in bus and tube fares if the shortfall proves insurmountable.
The alleged funding gap covers improvements to London's tube network
up to 2017. Transport for London is currently budgeting the works
programme for the period and senior figures believe it could be up to
£5bn short. One source said Livingstone had underestimated the
financial support needed for the Underground network when he
negotiated the Crossrail deal last year.
"In order to get government funding for Crossrail, the mayor agreed a
funding package that took the risk of cost overruns onto TfL's budget.
It also implied a settlement for London Underground which did not
recognise fully the likely cost of the tube over the next 10 years,"
he said.
A TfL spokesman said the organisation was confident it had the funding
for the next phase of the upgrade: "We simply do not recognise these
numbers," he said. "TfL has a fully funded business plan to 2010 and a
financial settlement from government out to 2017 that represents the
largest investment in London's transport system since the [second
world] war."
But last week the head of TfL, Peter Hendy, said the organisation did
not know whether the present settlement would cover the next phase of
the tube upgrade. TfL expects to complete a financial assessment of
tube plans by the autumn.
The funding problems are a legacy of the failed tube contractor
Metronet, which collapsed last year after a £2bn overspend. With
Metronet's contracts due to be transferred to TfL, Johnson is
responsible for delivering the work on budget
unquote.