Crossrail bill set to soar by £4billion, say experts

Fresh fears over the future of Crossrail emerged today as building costs threatened to soar by up to £4 billion.

That would put the final price of the scheme for a tunnel through central London, and associated links at either end, at around £20 billion.

Rising construction costs are forecast in a Royal Institution of Chartered Surveyors report which also says the price of other building projects such as 2012 Olympic Games venues is set to climb.

The RICS survey says that raw materials and labour costs have risen 12.2 per cent over the past year and could leap a further 12 per cent over the next two years.

It warns that the East London line and the £5 billion Thameslink refurbishment could also face "delays and, at worst, cancellation" because of the cost. The report added that the public sector-funded part of the projectswould come under increasing pressure to stay out of the red.

For example Crossrail,which is not due to be completed until 2017, is dependent on £5.6 billion of Government money.

But RICS added that public-sector projects will be one of the few growth areas in construction in Britain over the next few years.

Executive director of the RICS building information service Joe Martin said: "With large projects in rail, roads, electricity, water and sewerage all scheduled over the next two years, the civil engineering sector seems well placed to ride out the current economic downturn."