Industry pleads for Crossrail but still no sign of £15bn funds

Crossrail backing: business leaders from Canary Wharf have been among those arguing that the project is crucial for the economy

Crossrail is set to be delayed unless the City of London agrees to commit hundreds of millions of pounds in extra business rate and planning deals to fund it.

The latest stumbling block emerged today as Gordon Brown came under fresh pressure to back the £8.7billion East-West fast rail link for the capital.

One hundred business, industry and political figures joined the Campaign for Crossrail and declared the scheme was crucial to the economy.

They include leading businessmen from the City and Canary Wharf, a number of key financiers and rail, tourism and construction industry bosses as well as politicians from all three main parties.

The Evening Standard has also learned that secret negotiations over the longdelayed project are now focusing on how the City, rather than Canary Wharf, can top up government cash to pay for the project.

It is understood that Canary Wharf has pledged its sum but the Corporation of London is finding it difficult to match the amount demanded by Transport Secretary Ruth Kelly. According to sources close to the talks, the corporation as a whole is being asked to raise the money rather than individual businesses - either through an extra levy on companies in the Square Mile or Section 106 planning agreements to fund the rail works.

Ministers want a deal to be secured in time for the Government's Comprehensive Spending Review due next month. They have been "exasperated" by the City's failure to come up with big enough sums, even though it will be among the biggest beneficiaries of the link to Heathrow.

If a deal cannot be done, the project will have to be reconsidered next spring.

City insiders, however, have been irritated by the pressure put on them and believe Ms Kelly has set a "pseudo deadline" of tomorrow for new cash pledges.

In order to put the emphasis on the biggest beneficiaries footing most of the cost, small businesses will not have to pay the planned supplementary business rate for Crossrail. Businesses with a rateable value of less than £50,000 will not be subject to the 4p-in-the-pound rise on the 44p business rates levied now.

The City and Canary Wharf have been asked to come up with money on top of the supplementary business rate. One source said: "It seems only fair that firms in Barnet and Croydon don't pay as much as those in the centre of the city, which get most benefit."

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