Extending the DLR (Docklands Light Railway) to a poorly connected part of south-east London would help to deliver thousands of new homes and provide a £15.6bn boost to the economy, the Chancellor has been told.
Business leaders have written to Rachel Reeves to urge her to “seize the moment” and give the green light to the proposed £1.7bn DLR extension to Thamesmead in her Autumn Budget.
The scheme is one of London mayor Sir Sadiq Khan’s three “dream ticket” infrastructure projects for which Transport for London is seeking investment.
TfL wants to extend the DLR’s Beckton branch via a new tunnel under the Thames, meaning Thamesmead would only be 25 minutes from Stratford, and 35 minutes from the West End via a connection onto the Elizabeth line.
If funding and planning consent is received, TfL believes construction “could begin in the late 2020s, with the extension open in the early 2030s”.
The letter to Ms Reeves has been sent by Business LDN, the London Chamber of Commerce, and the London heads of the Federation of Small Businesses and the Institute of Directors, ahead of Budget day on November 26.
In the June spending review, the Government said it recognised the potential housing and economic benefits of extending the DLR but stopped short of allocating any funds, saying only it would “work closely” with TfL and the mayor as they finalised an outline business case.
The letter said: “The Government should now provide a clear green light. This project has overwhelming local support and could help unlock up to 25,000 new homes, support up to 10,000 new jobs and add £15.6bn to the economy.
“If London is to come close to hitting its annual 88,000 new homes target, investment in the capital’s transport infrastructure is a prerequisite.
“Delivering the DLR extension to Thamesmead would help keep our capital moving, boost growth and meet the Government’s ambitious housebuilding targets. We urge you to seize the moment as we head towards the Autumn Budget.”
TfL was granted a £2.2bn four-year capital funding deal in the spending review – with Sir Sadiq told he must increase TfL fares above the rate of inflation until end of the decade in return for the investment.
The two other big transport projects on the mayor’s wish list are the Bakerloo line Tube extension and the West London Orbital rail link between Hounslow and Hendon.
Under TfL’s proposals, which went out to consultation in the summer, the DLR would branch off after Gallions Reach station and travel through the Beckton Riverside area on a viaduct before descending to a new ground-level station to the south of Armada Way.
The earmarked site is currently vacant, opposite Gallions Reach Shopping Park. The new station would form part of a redeveloped town centre, with residential developments, employment, retail, and community facilities, according to TfL.
The track would descend underground into a tunnel to cross under the Thames towards Thamesmead.
The track would come out of the tunnel 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.
Cannon Retail Park and the proposed station location are located at Thamesmead Waterfront, part of a 100-hectare site proposed regeneration site owned by the Peabody housing association.
An initial TfL consultation on the wider concept of extending the DLR to Thamesmead won support but some respondents argued it would make more sense to extend the London Overground or Elizabeth line.
There were also calls for the extension to continue further south to connect with Abbey Wood station and with Bexley, and concern at the lack of a direct connection with City airport, which is on the Woolwich Arsenal branch of the DLR.
The DLR, which first opened in 1987, was extended to Woolwich Arsenal in 2009, tunnelling beneath the River Thames, with housing growth following in areas including Woolwich, Canning Town and the Royal Docks.
