Plans to extend the Croydon tram line to Crystal Palace have returned after they were included in Mayor of London Boris Johnson’s transport blueprint for the capital.

Mr Johnson revealed exclusively in an interview with this newspaper he had included the plans for the extension in his transport strategy to be published in the coming weeks.

It was the Mayor who mothballed the plans in 2008 because of a lack of funding.

Question marks still remain over how the project, estimated to cost between £62m and £170m, would be financed.

But its inclusion in the strategy has been welcomed by business leaders as a “statement of commitment” to the extension.

Crystal Palace and Norwood Chamber of Commerce chairman Ray Hall said it would boost businesses in the Crystal Palace triangle.

He said: “This is excellent news for Crystal Palace. It will make the area easier to access, bringing more shoppers and encouraging people to further invest in the area.”

The news of the potential improvement comes just weeks before the East London Line is due to open in the area on May 23, connecting Crystal Palace to West Croydon and London’s financial powerhouse, Canary Wharf.

Peter Cooper, partner at Cooper Giles estate agents, said both transport improvements were likely to push up property values, making Crystal Palace a more attractive option for people who work in Croydon or Canary Wharf to live.

Mr Johnson said no public funds were available for the project, but he would be lobbying for finances in the coming months. This is expected to be in both public and private sectors.

A spokesman for the Mayor said Transport for London was committed to a £54m investment in Tramlink up to 2015, but no funds were currently available for extensions to the network, although initial investigation of Tramlink extensions had been undertaken and would be explored further with boroughs and other key stakeholders.

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