A City Hall report has suggested that London could cut the cost of major new transport projects by up to half by adopting a European model of planning and financing.
The report, titled Mind the Funding Gap, highlights that infrastructure projects in the capital are often significantly more expensive than in other European cities. For example, the Jubilee line extension reportedly cost ten times more per mile than a comparable project in Madrid.
The report calls on the mayor and Transport for London (TfL) to restart work on Crossrail 2, which was paused after government funding was withdrawn during the Covid-19 pandemic. It warns that without reform, rising delivery costs could lead to more projects stalling at the planning stage.
Recent years have seen the completion of several new transport projects in London, including the Elizabeth line and Northern line extension. Last week’s Budget also confirmed government backing for the Docklands Light Railway (DLR) extension to Thamesmead. However, other projects, such as the Bakerloo line extension and West London Orbital, remain on hold.
The London Assembly Budget and Performance Committee report suggests that planning and financing reforms, modelled on successful European approaches, could make a significant difference. The committee pointed to Madrid’s metro expansion in the 1990s, which kept costs low by using standardised and simplified station designs.
Neil Garratt, chair of the committee, said: “Delivering new transport infrastructure has wide-reaching benefits for London, Londoners, and the wider country, yet challenges remain with funding and spiralling development costs. London could deliver major infrastructure projects between 20 and 50% cheaper if we adopted some of the planning and financing processes in neighbouring countries.”
The report also calls for a clear timeline from City Hall for transport developments until 2040, alongside a strategy to fund infrastructure with private investment.
TfL said it would respond to the report in due course. A spokesperson added: “TfL has a wealth of experience in London of delivering transport infrastructure projects. Many of these have been unlocked through innovative financing agreements with the private sector, which we continue to consider for major projects on a case-by-case basis.”
