I broadly agree with Olaf's view that wider economic issues and Brexit are what will set the agenda. The government is keen to avoid excessive spending commitments to give itself headroom to cope with the costs of Brexit. I am afraid that I fully expect London's economy to decline in the near future. I don't know if that will then pull the national economy down but it will not take much to go wrong in the Brexit negotiations for businesses to pull out of the UK. If we start to lose valuable City trading and also tech / science jobs centred in the South East then we're sunk really. That will pull down commuting and travel demand which directly affects the forecasts on which all transport investment is based. It will also affect London's ability to part fund CR2.
Thank you. Yes, I doubt that anyone has, or even expects to have, both a clear view of the overall picture and the detailed repercussions of the combined impact of all that is coming up ... looking at what is happening in the global money markets right now I expect anyone that had models in place will be having to redraw them as we chat.
I expect sectors of the old banking businesses to decline further - we know that parts of their businesses will move into EU states in the next few years - but the new financial businesses are concentrating in London. The downside to the latter is that they will bring revenue but not vast numbers of jobs. A decline in the value of Sterling is already benefiting industry but yes the provinces will be more exposed to any changes than London will be.
What the aggregate impact of all that will be is unknowable at this time and that is before allowing for changes from business use of comms technology and perhaps reductions in various transport subsidies.
I also think the spat between Khan and Grayling is not helping matters. The fact that CR2 is portrayed as a TfL / City Hall scheme will set Grayling's teeth on edge given his strident dislike of devolved schemes / government. For as long as he is SoS then we stand no chance of progress. He has also called for a "land value capture" tax / mechanism as part of CR2's funding. Whether that is viable I don't know but it looks like an almightly delaying tactic to me.
The stance that the DoT took was to prevent all of London's transport coming under one employer and thus exposed to Union activism; it was the renewed political activism of the Unions that scuppered the transfer of services to TfL.
The local tax arrangements will be similar to that for CR1 as far as I understand.
The crucial next moves are
a) does government approve the CR2 business case?
b) does the government show any willingness to proceed and allow TfL to seek powers for construction?
c) would the government allow TfL / City Hall to raise funding for a smaller scheme, perhaps across the centre and partly into NE London and to Wimbledon?
d) will the government preserve the scheme's safeguarding if there is a delay?
I am afraid I don't see construction starting for at least 20 years. I also think the scheme will go back into the "reassess options" stage which will unleash all sorts of debate currently lurking in the background.
Oh and while I completely sympathise with a desire to see schemes elsewhere in the UK proceed they won't be happening either if the economy catches a cold and Mrs May is PM.
To your points ) to d), the Government is supportive of CR2 but it s looking for maturity and robustness in the TfLs funding plans. That is before getting to finding the balance (what ever that may be given that costs may have to be revised upwards again) from central government funds. Add to that Conservative members proposing to block the scheme based on the 10 year disruption proposed for the center of Wimbledon. However, I do not think it will be pushed back by 20 years; perhaps into the next Parliament, but again I doubt anyone can make a financial commitment at this stage.