The project announced in August that monies beyond its agreed funding envelope were required to complete the scheme. This followed a previous additional financing package worth up to £2Bn which was agreed in December 2018.

The latest agreement will allow remaining infrastructure and station works to complete on the project before operational testing of the new Elizabeth Line begins ‘at the earliest opportunity’ in 2021.

Mayor of London Sadiq Khan said: “Securing this financing package enables us to press full steam ahead with getting the central section of the Elizabeth Line open as soon as possible.”

The agreement will see the Greater London Authority repay the £825M borrowed from the Department for Transport from business rate supplement and Mayoral community infrastructure levy revenues.

The Mayor added: “The Government has insisted London must pay the shortfall – despite the overwhelming majority of the tax income that will result from Crossrail going to the Treasury. I do not want this project to be stalled so it is vital that we dig deep to get the railway up and running.”

Business groups have welcomed agreement of the new funding package to complete the project. London Frist programme director for connectivity Adam Tyndall said: “Getting it open will be critical to the post-pandemic recovery.”

But he added: “London will have to pay this loan back and that will divert the capital's limited funds away from other essential upgrades. This deal is yet another example of the urgent need for a new long term sustainable funding settlement for Transport for London, so that the capital can continue to invest in public transport and plan for the future.”

London Chamber of Commerce & Industry chief executive Richard Burge said: “Crossrail will be a vital part of London and the UK’s public transport network, so it’s pleasing to see the Government working with Transport for London to ensure that the project can get back on track and eventually play a key role in our economic recovery.”

In a written statement to Parliament, Transport Secretary Grant Shapps said the Government remains committed to the “rapid completion” of the project, “in a way that is “fair to UK taxpayers”.

“However, London – as the primary beneficiary – must ultimately bear any additional costs,” he emphasised. “Crossrail Ltd is committed to reducing its funding shortfall and will take all necessary steps to complete the project without requiring further additional funding. Transport for London is ensuring that further independent analysis of costs is carried out.”

(Photograph: Crossrail)