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<p>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.</p><p>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.</p><p>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.</p>
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