Chancellor Rachel Reeves is expected to use next week’s budget to approve the extension of the Docklands Light Railway (DLR) to Thamesmead. The Treasury is understood to support the project, which is projected to enable the construction of up to 25,000 new homes and create as many as 10,000 jobs in the area.
The proposed extension would see a new line built from Gallions Reach to a station at Beckton Riverside, before crossing the river to Thamesmead. Transport for London (TfL) said the project would “create green, liveable neighbourhoods” and “improve connectivity across the river by cutting journey times and reducing car dependency.” Thamesmead was recently shortlisted as a potential site for a new town under the housing secretary’s plan to “get Britain building again.”
A Treasury source stated: “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.” TfL expects construction to begin in 2027, with the line opening to passengers in the early 2030s.
The project is estimated to cost around £1.7bn. Funding is expected to come primarily from borrowing by TfL and the Greater London Authority, with Treasury backing allowing them to secure the borrowing and potentially contribute a portion of repayments over time.
Extending the DLR has been a priority for London Mayor Sir Sadiq Khan. He said he was “really pleased” with the expected government support and described the project as a “massive vote of confidence in London.” He added that it would transform travel in an historically underserved part of the capital and support the development of new jobs and homes.
Len Duvall, London Assembly member for Greenwich and Lewisham, welcomed the announcement as “fantastic news,” emphasising the importance of promptly securing funding and planning to allow construction to begin as soon as possible. John Dickie, chief executive of BusinessLDN, said the extension would “unlock private investment into housing in Thamesmead, and support employment and social mobility.”
While the DLR extension is expected to move forward, other transport projects in London may not receive immediate funding. Plans to extend the Bakerloo Line from Elephant and Castle to Lewisham and proposals for the West London Orbital rail line are likely to be delayed. TfL is also considering taking over the Great Northern Rail line through Crews Hill in Enfield, which has been identified as a potential site for a new town, though no announcement on that is expected in the upcoming budget.
