Question to the Department for Transport:

To ask the Secretary of State for Transport, what representations his Department has received from (a) the Mayor of London and (b) Transport of London on the cost of the Croxley rail link; and whether the Government plans to provide additional funding to support the development of that link.

Since taking over management of the Croxley Rail Link in November 2015, Transport for London (TfL) has been reviewing the main work contracts. From discussions between officials in the Department and in TfL, we are aware that, as a result of prices received from the supply chain, the costs of the scheme are currently higher than the agreed budget. We understand TfL is considering how best to deal with this.

At a meeting with the Mayor on 5 December the Secretary of State for Transport re-confirmed the importance that the Government attaches to the scheme which will deliver significant transport benefits and significantly boost economic growth in Watford and the wider north west London area. Indeed, the Government, together with local councils and the Local Enterprise Partnership, has already committed substantial funding to this scheme and nearly 85% of the total budgeted cost.

Under the terms of the funding agreement in place for the scheme, TfL committed to the agreed budget of £284.4m and so agreed to meet any costs incurred over that budget. Conversely, they would retain the full amount of any cost savings. The Department will not be providing any additional funding for the scheme and expects TfL to complete it as agreed.