DLR extension to Thamesmead 'significantly' more than 1.5bn as Abbey Wood link is ruled out

"The admission came as it emerged that Transport for London considered further extending the new line from Thamesmead to Abbey Wood, where passengers could interchange with the Elizabeth line only to rule it out on cost-benefit grounds. And in a separate development, City Hall staff were warned that job cuts were still on the agenda, despite London mayor Sir Sadiq Khan having received 155m more than expected in new Government grants."

"Fay Hammond, chief finance officer at the Greater London Authority, told the assembly's budget committee that the 1.5bn price tag for extending the DLR from Beckton, via a new tunnel under the Thames, only covered the construction costs and not the additional cost of borrowing the money. She said: The overall scheme is more than 1.5bn in totalThe cost of the overall programme exceeds 1.5bn because you have got the borrowing costs on top of that, which will be significant over 30 years."

"The Government has promised to contribute towards the cost of building the extension, but the amount on offer is currently unknown. The bulk of the funding will come from loans taken out by the GLA against future increases in business rates, and by TfL against future fares income. Ms Hammond said that the first trains on the new route which will provide a desperately needed fast link between Thamesmead, Stratford and Canary Wharf - were expected to start running in 2033. She said that Newham and Greenwich councils would both be expected to surrender part of their business rates income to help fund the extension."

Transport for London considered extending the new DLR line from Thamesmead to Abbey Wood but ruled the further extension out on cost-benefit grounds. The DLR extension from Beckton to Thamesmead via a new tunnel under the Thames carries a construction price tag of £1.5bn, excluding significant borrowing costs over 30 years. The Government has promised some contribution, though the amount remains unknown. Most funding will come from loans taken by the Greater London Authority against future business rates and by TfL against future fares income. First trains are expected to run in 2033. Newham and Greenwich councils will surrender part of business rates to help fund the project. City Hall's finances for 2026/27 are predicted £155m better than anticipated, but job cuts remain on the agenda.

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