Business leaders and local authorities are pressing Chancellor Rachel Reeves to approve a £1.7 billion extension of the Docklands Light Railway (DLR) to Thamesmead, a project that promises significant housing, employment, and economic benefits but has yet to secure government funding. The proposed extension would link Thamesmead with the existing DLR network, unlocking the potential for up to 25,000 new homes and creating around 10,000 jobs, while contributing an estimated £15.6 billion to the economy. Support for the project at the local level is robust, with construction expected to commence in the late 2020s and the extension operational by the early 2030s, contingent on funding and planning approvals.

Despite recognising the project's potential in the recent June spending review, the government has so far refrained from allocating any funds, stating it would "work closely" with Transport for London (TfL) and the Mayor of London as an outline business case is finalised. This cautious approach has been a source of frustration: Mayor Sadiq Khan has voiced concerns over insufficient investment in London's transport infrastructure, emphasising the need for projects like the Thamesmead DLR extension to stimulate economic growth and address housing shortages.

Local authorities are playing a crucial role in advancing the project. Transport for London recently provided additional funding to support the extension's development, which the Royal Borough of Greenwich has welcomed as a significant step forward. The council is actively encouraging residents to contribute to TfL's consultation processes, which have revealed strong public backing. A survey conducted in partnership with the London Borough of Newham showed that 58% of respondents believe the extension would speed up local journeys, while 75% agree it would enhance travel connectivity across east and southeast London. These findings underscore widespread community enthusiasm for improved transport options.

However, funding challenges persist at the local level. Greenwich Council has raised concerns about its ability to meet the financial obligations required for the project, engaging in negotiations with the Mayor of London to reduce its share of costs. Both Greenwich and Newham councils face considerable fiscal pressure, underscoring the complexities of delivering large infrastructure projects that rely on multi-tiered financing arrangements. Despite these hurdles, the councils remain committed to detailed planning and exploring all funding avenues to push the extension forward.

The DLR extension to Thamesmead represents a transformative infrastructure investment that aligns with broader regional strategies to boost housing supply and economic development in London. Although the government’s hesitancy to commit funds has slowed momentum, local stakeholders and business groups continue to advocate strongly for the project, urging that it receives the necessary backing in the upcoming Autumn Budget to realise its promising benefits.

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Source: Noah Wire Services