TAXPAYERS are funding the building of the £60m Thames cable car until a private sponsor is agreed.

Initially, Transport for London (TfL) estimated the link from the O2 arena to the Excel Centre would cost £25m and that private finance would pay for it.

Earlier this year, the estimate increased to £45m, with TfL saying it would pay for the scheme upfront from its own budget, until a sponsorship deal had been agreed.

Now TfL says the total cost has reached £60m and that a sponsorship deal has still not been agreed.

Malcolm Reynolds, 27, of Shooters Hill said: "It's ridiculous. I use public transport to go across the river to work everyday, but the cable cars won't be any use to me.

"We've been told our fares will rise in the new year and in the meantime work has started on a project which hasn't secured funding.

"You wouldn't be able to start up a business without the money, so why is it ok to use taxpayers' money for the cable cars?"

A TfL spokesman said: “Construction costs are estimated at about £45 million.

“The figure of £60m takes full account of all other costs, including design and achieving planning permission.

“The Mayor of London is confident that a commercial sponsorship deal and a pending application to the European Union for regeneration funding will cover the bulk of the construction costs.”

Chair of the London Assembly transport committee Caroline Pidgeon said: "It is hard to have confidence in the mayor's control of this project when he is incapable of stating when exactly it will open, or what it will end up costing London's taxpayers."

Once finished, the cable cars will run 50m above the Thames, carrying up to 2,500 people an hour between North Greenwich and Royal Victoria Dock.