Chancellor Rachel Reeves has given the go-ahead for an extension of the DLR (Docklands Light Railway) to Thamesmead in her Budget.
London mayor Sir Sadiq Khan has described the news as a “win-win” as it will improve transport links in a poorly connected part of south-east London and should “unlock” thousands of new homes and jobs.
But what does it mean in practice? Where will the new stations be built, what difference will it make to commutes – and does it man that other London transport schemes such as the Bakerloo line extension will be less likely to happen?
What is being announced?
Ahead of the Budget, Treasury sources told The Standard that the Chancellor would effectively give Sir Sadiq Khan and Transport for London the green light to extend the DLR to Thamesmead, a project estimated to cost £1.7bn.
However she won’t simply sign a cheque for £1.7bn. What was more likely is that the Treasury will “underwrite” the project and contribute a small amount of cash – giving TfL the certainty that it can apply for loans to get it built.
This is exactly what happened on Budget day: the Budget documents state that “the majority of the costs” will be met by Transport for London and the Greater London Authority, “with the Government also contributing over the long term”.
The Budget documents add: “The Government will continue to work with London to finalise funding details and will continue to work with the GLA to look at options for innovative financing to support the delivery of infrastructure projects in the capital.”
This could mean a levy on businesses or property owners in the area - akin to the Northern line extension to Battersea- as they will benefit from the new link.
But the failure to provide a precise figure will allow the mayor’s critics to claim that the Government support is an illusion, and may cause a degree of concern at TfL about exactly where the money will come from.
Which part of the DLR is being extended?
It will be the Beckton branch that will be extended from east London across the Thames to Thamesmead.
TfL’s plan is for the 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.
What does it mean for the Bakerloo line extension – and the West London Orbital?
The City Hall Conservatives believe that both are now “dead”, but a source close to Sir Sadiq said that “conversations continue”.
Labour assembly member Krupesh Hirani said that he didn’t believe that the West London Orbital and Bakerloo line extension “are completely dead in the water”.
However there was no mention at all of either the Bakerloo line extension nor the West London Orbital in the 2025 Budget.
That means the Bakerloo extension will remain something of a pipe dream – as will the West London Orbital rail link, which would form part of the London Overground and would be much easier to open than building a Tube extension.
How much money is the Chancellor giving to TfL?
We don’t know yet - and the Budget failed to make this clear, saying only that TfL and the GLA would contribute the “majority” of the costs.
TfL has already done quite well in terms of Government support this year – but the £2.2bn it received in the June spending review has come at a cost. In return for funding, Sir Sadiq is under orders to hike Tube fares above the rate of inflation each year until the end of the decade.
Why has Thamesmead been chosen?
The riverside area of Thamesmead has huge potential for thousands of homes. It is a “brownfield” site in a hard-to-reach part of the city that will come within 30 minutes of Canary Wharf and Stratford once the DLR opens.
In September, Thamesmead was earmarked as a potential site of one of 12 “new towns” in England. The other site in London is at Crews Hill in Enfield, where Green Belt land would be lost if up to 21,000 homes are built.
Up to 25,000 new homes and 10,000 jobs could be “unlocked” in Thamesmead and over the next 30 years, according to the Treasury.
What is the timeline?
TfL believes that construction can start in 2027 and the new DLR link can open by 2032 – but this does feel ambitious. The Silvertown tunnel took more than a decade to complete, though it was far more controversial than the DLR extension is likely to be. The engineering challenge will be digging a new tunnel under the Thames. The use of viaducts to carry the DLR over the Beckton Riverside and Thamesmead areas should be easier than trying to carve a route on the ground.
Is anybody opposed?
Not that we’ve heard yet – but some politicians in south-east London suggested it would make more sense to extend the DLR to Abbey Wood, to create an interchange with the Elizabeth line.
The City Hall Conservatives believe the Chancellor’s pre-Budget announcement – with no numbers attached – was simply a ruse to distract attention from a feared council tax for Londoners living in larger homes.
How would the DLR extension speed-up journeys?
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.
There would be two new stations – one after Gallions Reach, on the north side of the river, and one in Thamesmead.
Extending the DLR to Thamesmead would almost halve travel times to Stratford to about 25-30 minutes, and bring Canary Wharf within a 20-25 minute journey. About 500,000 Londoners could have shorter commutes as a result.
What do we know about Thamesmead becoming a “new town”?
The New Towns Taskforce report, published in September, shortlisted Thamesmead – but made clear that the “creation of a riverside settlement” in the area was dependent on the DLR being extended to the area.
“Without this being the case, Thamesmead Waterfront’s opportunity cannot be realised,” it said.
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.”
Has the DLR been extended before?
The DLR, which first opened in 1987, was extended to Woolwich Arsenal in 2009 via a tunnel under the Thames.
A new fleet of trains is behind schedule – and the first three new trains has been temporarily withdrawn due to problems with the brakes.
