PPP 'will cost more than estimated'

The cost to taxpayers of the Government's part-privatisation of the Tube is at least another £100 million a year more than estimated, London Underground confirmed today.

This is on top of the £1 billion a year government funding already agreed for the scheme to hive off large sections of the Tube to the private sector on 30-year leases.

Sources in the Mayor's office said it only confirmed claims by Ken Livingstone that the public private partnership (PPP) is vastly more expensive than other methods of funding the network.

LU said today it would "not disagree" with financial estimates put forward by Transport for London (TfL), the Mayor's authority, that there is a £770 million shortfall for operations during the first seven and a half years of the PPP.

LU sources said they were " confident" the extra money would be forthcoming from the Government.