'Full speed ahead' for Crossrail despite business levy protests

Boris Johnson today said Crossrail was on the fast track to completion despite protests from business chiefs at being forced to pay towards the £16billion project.

The Mayor promised that the long-awaited rail link is on schedule to open in 2017 after progress was made on three vital sources of funding. Today ministers and Mr Johnson announced:

● Responsibility for delivering Crossrail will be transferred to the Mayor tomorrow after agreements over governance and funding were signed.

● Legislation allowing the Mayor to raise £3.5billion through a levy on London firms will be published in Parliament.

● The City of London Corporation has signed up to raising up to £350 million for the scheme.

"Today is an important moment for London as Crossrail will now move forward full speed ahead," said Mr Johnson. "The pace of delivery will now quicken - with Crossrail transferring to TfL tomorrow, work at Tottenham Court Road beginning in the spring, and delivery partner companies being appointed early next year."

Concerns grew this year after the Mayor and ministers missed a September deadline to sign governance and funding documents. Local government minister John Healey was also today publishing the Business Rates Supplements Bill which was not mentioned in the Queen's Speech. It allows the Mayor and other top-tier local authorities to charge a levy of up to 2p on business rates to raise funds for infrastructure projects.

Business chiefs condemned the introduction of the legislation as Britain plunges into recession. John Cridland, deputy director general of the CBI, said "now is not the time" for the tax.

But Mr Healey insisted that the levy would only be charged from 2010 and would aim to raise £178million a year in London for Crossrail.