City Hall has taken the highly unusual step of daring to criticise Chancellor Rachel Reeves by suggesting she is not prepared to fund major projects in London up until 2030.
Sources close to the mayor Sir Sadiq Khan believe there will be no support for any of the three key transport projects on Transport for London’s “wish list”.
These are the DLR extension to Thamesmead, the Bakerloo line Tube extension and the West London Orbital rail link between Hounslow and Hendon.
The move – a rare example of a “red on red” attack that Labour mayor Sir Sadiq has been at pains to avoid during the first year of the Labour Government – comes two days before the Chancellor sets out her long-term spending plans in the comprehensive spending review.
Puzzingly, it also comes less than a week after Ms Reeves’ deputy, Chief Secretary to the Treasury Darren Jones, described Sir Sadiq as “brilliant” during a debate in the Commons.
However, The Standard understands there is greater optimism that a long-term funding deal for TfL is closer to being agreed – which is far more significant in terms of the day-to-day operation of the capital’s transport network.
A multi-year deal would potentially enable TfL to upgrade the signalling on the Piccadilly line – enabling the new trains that are being introduced later this year to run at greater frequency – and could also enable more zero emission buses to be ordered to get London closer to removing all diesel buses from the capital’s streets by 2030 rather than 2034.
A generous capital funding settlement could also pave the way for new trains to be ordered for the Bakerloo line.
However the apparent failure to win support for the proposed £2bn DLR extension across the Thames to Thamesmead has caused City Hall to make public its concerns that London could lose out to the rest of the country.
A source close to the mayor said: “Over the past nine years as mayor, Sadiq has fought to deliver for London - in the best interests of Londoners and the whole country.
“We know that when London does well it means the whole country does well, and that it will simply not be possible to achieve national growth ambitions without the right investment and growth in our capital.
“We must not return to the damaging, anti-London approach of the last government, which would not only harm London’s vital public services, but jobs and growth across the country.
“Sadiq will always stand up for London and has been clear it would be unacceptable if there are no major infrastructure projects for London announced in the Spending Review and the Met doesn’t get the funding it needs.
“We need backing for London as a global city that’s pro-business, safe and well-connected.
“It’s absolutely crucial at this time of global uncertainty that we send the right message to attract investment, which helps to bring prosperity to the whole of the UK.
“It’s also important to recognise that parts of London still have some of the highest levels of poverty anywhere in the UK.
“Sadiq will always stand up for London and has been crystal clear that the way to level up other regions is not to level down London.”
Last week, during a debate in the Commons, Labour MP Dawn Butler - who Sir Sadiq has described as his best friend in Parliament - asked Mr Jones for reassurances that, in the spending review, “there will be a different attitude to London spending that will help with infrastructure projects such as the docklands light railway and its Thamesmead extension?”
Mr Jones replied: “I thank my hon. Friend for her question and for rightly recognising the importance to our country of its capital city, which has been at the centre of our engine of growth for many years.
“She also alludes to the fact that we have a brilliant Labour Mayor of London in Sadiq Khan, who strongly makes the case for investment in the capital. We will make further announcements next week that will bolster and strengthen London, and Sadiq’s leadership in London, to deliver for the whole country.”
Senior figures at City Hall had moved away from seeking a straightforward cash injection to requesting permission to borrow money -along the lines of the way the Northern line extension to Battersea was funded - as an alternative solution.
However, the fact that TfL is expected to declare a second successive annual “operating surplus” - though one far smaller than in 2023/24 - may have weakened its hand in securing Treasury funds.
But City Hall is “more optimistic” on TfL’s request for capital funding. Previously it has asked for £500m a year but did not put a figure on its most recent submission to the Treasury, which was submitted in February.
A source said that the TfL funding package “should be a better long-term capital deal than we saw under the Tories”.
A Treasury spokesperson said: “We know the success of the London transport network is critical for both the capital and the UK’s economy, which is why during the Budget the Chancellor announced TfL would receive nearly £500 million in additional funding.
“This week’s Spending Review will deliver economic growth for London and all parts of the country, driven by investment and focused on the priorities of working people, putting more money in their pockets.”
