Treasury expected to back extending London’s DLR to Thamesmead

Chancellor Rachel Reeves is expected to use next week’s budget to give the go-ahead for the Docklands Light Railway (DLR) to be extended to Thamesmead.

BBC London understands that the Treasury will back the plan, saying it could lead to 25,000 new homes in the area and up to 10,000 new jobs.

The extension of the DLR would see a new line built from Gallions Reach to a new station at Beckton Riverside and then across the river to Thamesmead.

Transport for London (TfL) welcomed the news the government plans to back the extension, saying it would “create green, liveable neighbourhoods” and “improve connectivity across the river by cutting journey times and reducing car dependency”.

Last month Thamesmead was one of the areas shortlisted for the construction of a new town under the housing secretary’s plan to “get Britain building again”.

A Treasury source said: “Extending the DLR to Thamesmead will deliver much needed new homes, new jobs and quicker commutes – the building blocks for boosting growth, putting more pounds in pockets.”

TfL expects construction of the extension to begin in 2027, with customers using it “in the early 2030s”.

The government’s backing for the DLR extension will not necessarily come with a huge cash hand-out.

The extension is expected to cost about £1.7bn, and would most likely be paid for with borrowing by TfL and the Greater London Authority.

With backing from the Treasury, it would enable them to make that borrowing, and possibly contribute a proportion of the repayments over the long term.

Extending the DLR had been one of the big asks from London’s mayor Sir Sadiq Khan from the budget.

Sir Sadiq said he was “really pleased” that the government is expected to back it.

“The project is a win-win and a massive vote of confidence in London,” said Sir Sadiq.

“It will not only transform travel in a historically underserved part of the capital, but also unlock thousands of new jobs and homes, boosting the economy not just locally but nationally.

“I look forward to working hand in hand with ministers to deliver this vital project as we continue building a more prosperous London for everyone.”

Len Duvall, London Assembly member for Greenwich and Lewisham, said the government’s expected commitment was “fantastic news”.

“The focus must now be on ensuring the funding and planning begin quickly, so that construction can begin as swiftly as possible,” he said.

John Dickie, chief executive of BusinessLDN, said the extension to Thamesmead would boost growth and help deliver housing.

“The chancellor’s backing for this shovel-ready project will unlock private investment into housing in Thamesmead, and support employment and social mobility,” he said.

Getting backing for DLR extension will be seen as a win by City Hall, but it is not likely to be such good news for other big transport projects in the capital.

Bids to get support for extending the Bakerloo Line from Elephant and Castle to Lewisham, and for funding for the West London Orbital rail line are expected to be put on the back burner for now.

TfL is also looking to take over the Great Northern Rail line that runs through Crews Hill in Enfield – another of the areas announced as a site for one of the government’s new towns.

It is not clear if there will be any announcement on that in the budget.