WOOLWICH is back in the running to have a station on the £16bn Crossrail network, the Government announced yesterday.

The news, which was broken to the Crossrail Select Committee this morning at Westminster, could mean thousands of new homes and jobs in Woolwich.

The campaign to include Woolwich on the network was led by Greenwich Council and was publicly backed by News Shopper.

It received a blow in October last year when the Government announced Woolwich would not have a station due to its proposed £270m cost.

Now, the council and developer Berkeley Homes have come to a solution which will not add to the costs or impact on public finances.

Berkeley Homes will build and pay for the basic box structure of the station and construct their own development overhead.

The fitting out of the station will be paid for by a combination of business contributions and Londonwide Crossrail funding contributions.

Crossrail would link Maidenhead in Berkshire to Shenfield in Essex via Heathrow airport and tunnels under London.

One of the two east branches running from Liverpool Street will extend through Whitechapel down through the Isle of Dogs and the Royal Docks, crossing the Thames to join the north Kent line at Abbey Wood, with some services continuing to Ebbsfleet.

The project, which was first proposed in 1989, expects to see construction start this year, with trains operational by 2013.

The Crossrail Bill could still face debate in the House of Commons.

Secretary of State for Transport, Douglas Alexander, said: "More work needs to be done to flesh out this deal but the House can now have sufficient confidence that Berkeley and Greenwich Council have the commitment and the right incentives to do it.

"This is a very significant change from the position last October as there is now a clear way forward that can deliver a station at Woolwich without adding to the costs of Crossrail already identified.

"On this basis, I am now able to bring forward an amendment to the Bill to provide powers for this station.

"In due course, the House will be invited to agree a further instruction to the Committee in respect of Woolwich."

Councillor Chris Roberts, Leader of Greenwich Council said: "I am delighted that our campaign which has garnered the support of so many businesses and residents has enabled Woolwich to be included in the Bill.

"Nothing can cement the regeneration of Woolwich more than the inclusion of a Crossrail station.

"The service would operate at 5 minutes intervals and place Woolwich just 7 minutes from Canary Wharf, 15 minutes from Tottenham Court Road and less than 45 minutes from Heathrow.

"I would like to thank all those who have lent us their support so far and pay a particular thanks to the Crossrail Select Committee for seeing the validity of or case and to the Secretary of State for allowing us the time to develop our case together with our partners at Berkeley Homes."

Greenwich MP Nick Raynsford said: "This is a hugely important breakthrough for Woolwich and south east London.

"The Woolwich station will bring massive transport and regeneration benefits to one of the most disadvantaged communities in Britain.

"I congratulate all involved - the Department for Transport, Greenwich Council, Berkeley Homes, the Crossrail Select Committee, and all the people who supported our campaign - for this triumph of common sense.

"If ever there was a location crying out for a Crossrail station, it is Woolwich, and it is really good news that this is now much closer to becoming a reality.

"I look forward to seeing Woolwich reinstated in the Crossrail Bill.

"Over the coming months I intend to work closely with all interested parties to ensure that the Crossrail scheme proceeds and the detailed arrangements for financing the Woolwich station are concluded satisfactorily."