Chancellor Rachel Reeves is anticipated to announce the approval for the expansion of the Docklands Light Railway (DLR) to Thamesmead in next week’s budget.

According to BBC London, the Treasury is in favor of this initiative, highlighting its potential to facilitate the construction of 25,000 new homes and generate up to 10,000 employment opportunities in the region.

The proposed DLR extension is set to feature a new route stretching from Gallions Reach to a station at Beckton Riverside, before crossing the river into Thamesmead.

Transport for London (TfL) expressed enthusiasm upon learning that the government intends to support the extension, emphasizing that it would “foster green, liveable communities” and “enhance river connectivity by reducing commute times and reliance on cars.”

Last month, Thamesmead was shortlisted as a candidate for the establishment of a new town, aligning with the housing secretary’s initiative to “revitalize construction in Britain.”

A source from the Treasury remarked, “The DLR’s expansion to Thamesmead will provide urgently needed housing, create jobs, and shorten travel times—essential components for stimulating growth and improving disposable income.”

TfL anticipates that construction on the extension will commence in 2027, with service availability projected for the early 2030s.

However, the government’s support for the DLR extension is unlikely to come with a considerable financial grant.

The estimated cost for the extension stands at approximately £1.7 billion, which will likely be funded through loans from TfL and the Greater London Authority.

With the Treasury’s endorsement, these authorities would be empowered to undertake borrowing, potentially receiving assistance with repayment in the long term.

The DLR expansion was a key priority outlined by London’s Mayor, Sir Sadiq Khan, in the budget discussions.

Sir Sadiq expressed his satisfaction with the expected government support, stating, “This project is a win-win and serves as a significant vote of confidence in London.”

He added, “It will revolutionize transportation in a historically underserved area of the capital, while also generating thousands of new jobs and homes, thereby enhancing the economy both locally and nationally.

“I am eager to collaborate closely with ministers to bring this crucial project to fruition, as we strive to build a more prosperous London for all.”

Len Duvall, a member of the London Assembly for Greenwich and Lewisham, described the anticipated government commitment as “fantastic news.”

He emphasized the importance of quickly initiating funding and planning processes to ensure that construction can commence as soon as possible.

John Dickie, CEO of BusinessLDN, stated that the Thamesmead extension would greatly stimulate growth and facilitate housing development.

“The Chancellor’s support for this ready-to-go project will attract private investment into Thamesmead, fostering employment and social mobility,” he stated.

While this backing for the DLR expansion will be perceived as a victory for City Hall, it may not bode well for other major transport developments in the capital.

Plans to secure support for extending the Bakerloo Line from Elephant and Castle to Lewisham, as well as funding for the West London Orbital rail line, are expected to be temporarily sidelined.

TfL is also seeking to take over the Great Northern Rail line that passes through Crews Hill in Enfield, which has also been designated as a site for one of the government’s new towns.

It remains uncertain whether there will be any updates regarding this in the upcoming budget.