Crossrail 2 would bring a boost to London's economy, reduce overcrowding and make rail services more reliable, said the London Assembly.

Investing in increasing London's rail capacity could bring benefits of up to £49bn to the capital.

The Assembly's Transport Committee backs investment in Crossrail 2 in its response to Transport for London and Network Rail's consultation on Crossrail 2. It states that it is needed to cope with London's rapid population growth, which is forecast to approach 10 million by 2031. Levels of Tube congestion previously predicted for 2031 might be reached as early as 2020, putting significant pressure on London's transport network.

Overcrowding on London's rail is already a significant problem. Figures released by Department for Transport (DfT) last week showed that nine of the 10 most overcrowded routes originated or terminated in London.

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The Committee felt that a regional route would have more benefits for the capital, including its capacity to carry more passengers and alleviate overcrowding on existing services. Passengers at suburban stations, such as Surbiton – on the route of the UK's tenth most crowded service – could see improvements to overcrowding on services if Crossrail 2 is delivered.

Valerie Shawcross AM, Chair of the Transport Committee, said: "London needs a transport network that can cope with the millions of extra passengers that will travel on our tube and trains in future. The cost-effective investment needed to construct Crossrail 2 will herald sustainable rewards, potentially boosting London's economy by up to £49bn, not to mention much-needed relief to passengers suffering on some of the UK's most-crowded services.

"Crossrail 2's construction should be the catalyst to realise London's Olympics regeneration dream. Improving transport links to the Lea Valley alone could have the potential to boost London's economy by £4 billion, showing what a world of difference this could make to disadvantaged parts of London. We must all get behind Crossrail 2 to ensure London has the transport it needs for its future growth."

(CD/JP)