The City of London Corporation has finally agreed to help fund the £16bn Crossrail project but will stump up a maximum of £250m, less than the £350m the government was hoping for.

The decision came after a meeting of the City of London’s Court of Common Council in London’s Guildhall on Tuesday.

Speaking earlier in the week prime minister Gordon Brown said the government would only fund Crossrail if business agreed to pay a “significant contribution”.

The corporation declined to say how much it will contribute but City insiders said it would “not be more than £250m”.

Brown said details about government funding for the project would be provided in the Comprehensive Spending Review, which is expected later this month.

One said: “We already gave at the office, in taxes. The government can foot the rest of the bill with some of that money."