At a glance
• The Government is expected to approve the £1.7bn DLR extension to Thamesmead in the Budget
• Construction will start in 2027 and the link will open in 2032, with new stations on either side of the River Thames
• The project will unlock up to 25,000 homes and 10,000 jobs but may mean the Bakerloo line extension and West London Orbital rail link remain on the back burner
The long-awaited £1.7bn extension of the Docklands Light Railway to Thamesmead is expected to be given the green light in the Budget in a massive boost to south-east London, The Standard has been told.
Chancellor Rachel Reeves will next week grant permission to Transport for London and London mayor Sir Sadiq Khan to secure loans to enable the DLR network to be expanded under the Thames from Beckton.
Other than the opening of the HS2 station at Old Oak Common, this is likely to be the biggest upgrade to the London transport network for the next decade.
Improving public transport links to Thamesmead is vital if the “deprived” area, which has been earmarked as one of two sites in London where “new towns” could be created, is to fulfil its potential.
At present, Thamesmead has neither a Tube station nor a train station. Residents who rely on public transport have to catch a bus to Abbey Wood or Woolwich to access the DLR or Elizabeth line.
London mayor Sir Sadiq Khan has described the DLR extension as “essential” to deliver thousands of homes and jobs. He is “confident” it can open by 2032.
Sir Sadiq said: “I’m really pleased that the Government is backing the DLR extension to Thamesmead - something I’ve long called for alongside London’s businesses and communities.
“The project is a win-win and a massive vote of confidence in London.”
Ms Reeves, who will deliver her Budget on November 26, is expected to effectively underwrite the project by committing a small amount of Government funding.
This is in line with TfL’s hopes – it had sought permission from the Government to borrow money to extend the DLR, which it would repay over the long term, and was not seeking £1.7bn in cash.
A Treasury source said: “This Budget will choose growth over austerity by supporting renewal in every part of the country.
“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.”
Precise figures on the level of Government support are yet to be made public. Construction is expected to start in 2027.
There would be two new stations – one after Gallions Reach, on the north side of the river, and one in Thamesmead.
However, the backing for the DLR extension is likely to come at the expense of TfL’s two other “big ticket” schemes – the Bakerloo line extension and the West London Orbital train link that would be a new addition to the London Overground.
TfL may also feel embarrassed to have the extension confirmed at a time it has been forced to withdraw the first of its £1bn new fleet of trains from service as it tries to remedy faults with their braking systems.
Extending the DLR to Thamesmead would almost halve the travel time to Stratford to about 25-30 minutes, and bring Canary Wharf within 20-25 minutes. About 500,000 Londoners could have shorter commutes as a result.
Up to 25,000 new homes and 10,000 jobs – could be “unlocked” over the next 30 years, according to the Treasury.
TfL commissioner Andy Lord said on Thursday: “We welcome news from the Government that it plans to back the transformational extension of the DLR to Beckton Riverside and Thamesmead.
“It will improve connectivity across the river by cutting journey times and reducing car dependency.”
In her spending review in June, Ms Reeves caused dismay when she declined to earmark funding for the DLR extension, though she did ask TfL and the mayor to submit a business case.
In September, the capital’s business leaders wrote to the Chancellor to urge her “seize the moment” and support TfL’s plans, saying the DLR extension would help to deliver thousands of new homes and provide a £15.6bn boost to the economy.
That request has now been accepted - driven in part, no doubt, by the decision to designate the area as a potential new town.
TfL’s plan is for the DLR’s Beckton line to branch off after Gallions Reach station and travel through the Beckton Riverside area on a viaduct before descending to a new ground-level station opposite Gallions Reach shopping park.
The new station would form part of a redeveloped town centre north of the river, with residential developments, employment, retail, and community facilities, according to TfL.
The DLR would descend underground into a tunnel to cross under the Thames towards Thamesmead.
The track would emerge onto a viaduct to pass over the Twin Tumps and Thamesmere Site of Importance for Nature Conservation before terminating at an elevated station in Thamesmead town centre, on the current site of Cannon Retail Park.
In September, Thamesmead was named as one of 12 locations across England earmarked for thousands of new homes by the Government’s New Towns Taskforce.
However the report made clear that the “creation of a riverside settlement” in Thamesmead was dependent on the DLR being extended to the area, which currently has no train or Tube station.
It said: “If selected as a new town, there would need to be confirmed government support for the DLR extension before it can move forward to delivery.
“Without this being the case, Thamesmead Waterfront’s opportunity cannot be realised.
“There would therefore need to be a commitment from HM Treasury, Department for Transport and MHCLG to bring this forward.
“There is also a need for funding support to remediate land given its brownfield status and various historic uses.”
The DLR, which first opened in 1987, was extended to Woolwich Arsenal in 2009 via a tunnel under the Thames.
The New Towns Taskforce report said there was capacity to expand Thamesmead to the 15,000 homes originally envisaged post-war.
It said: “The original promise of the Thamesmead new town can be renewed – creating a modern, vibrant, waterfront community that benefits and reinvigorates wider East London.
“The majority of the site is held by only one landowner (Peabody, who are delivering the project as part of a Joint Venture with Lendlease and The Crown Estate).
“This is also one of the largest developable opportunities in London that is not part of the Green Belt.
“There are further housing opportunities on the other side of the river at Beckton where 10,000 homes could come forward that are also linked to the Docklands Light Railway.”
The other London location selected for a new town is Crews Hill, in Enfield. However, conservationists have vowed to fight the plans.
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