In a significant move for the capital's infrastructure, Chancellor Rachel Reeves is poised to give the green light to a major new transport project in next week's budget. The £1.7 billion extension of the Docklands Light Railway (DLR) to Thamesmead is expected to be officially funded, a project championed as a catalyst for immense economic and housing growth in a historically underserved part of London.
A Transformative Project for South-East London
The planned extension aims to bridge a critical transport gap in south-east London. The area of Thamesmead, perhaps best known for its brutalist architecture featured in Stanley Kubrick's A Clockwork Orange, has long suffered from a lack of adequate public transport links. This has been a major barrier to the redevelopment of its prime riverside location.
The new route will extend the DLR from its current terminus at Gallions Reach, located near London City Airport. The project will include a new station at Beckton and, crucially, a final stop in Thamesmead itself, directly connecting the area to the heart of London's financial and business districts.
Slashing Commute Times and Boosting Growth
The impact on daily life for residents is projected to be substantial. Currently, a journey from Thamesmead to the City of London can take around an hour, with trips to Stratford taking between 45 and 55 minutes. The new DLR link is forecast to dramatically cut these times, bringing commutes into central London down to between 35 and 40 minutes and to Stratford in just 30 minutes.
Beyond faster travel, the economic benefits are staggering. A Treasury source stated the extension will "deliver much-needed new homes, new jobs, and quicker commutes – the building blocks for boosting growth." The project is anticipated to unlock land for 25,000 new homes and facilitate the creation of up to 10,000 new jobs. This development is also expected to attract nearly £18 billion in private investment into the local economy.
Cross-Party Support for a London Priority
The project has received strong backing from London's Mayor, Sadiq Khan, who has long advocated for the extension. Mayor Khan welcomed the government's support, calling it "a massive vote of confidence in London." He emphasised that the DLR extension is a "win-win" that will not only revolutionise travel but also provide a major boost to the economy both locally and nationally.
With the official budget announcement expected next week, this £1.7 billion investment marks one of the most significant transport and housing initiatives for the capital in recent years, setting the stage for a new chapter of growth in east and south-east London.