Mayor Sadiq Khan has revealed a strategy to utilise innovative financing approaches to support new London Overground expansions and the Bakerloo line extension, following the government's decision not to allocate funds for these projects in the recent Budget.
Government Funding Decisions and Khan's Response
In the November Budget, Chancellor Rachel Reeves approved £1 billion for a Docklands Light Railway (DLR) extension to Thamesmead, but declined to back other key transport initiatives proposed by the Mayor. Specifically, Khan's plans for the West London Orbital and the Bakerloo line extension were not included in the government's financial support.
Details of the Proposed Projects
The West London Orbital is a planned railway line that would connect Hounslow to Hendon and West Hampstead, potentially introducing four new stations. One of these stations, Old Oak Common Lane, is designed to facilitate future connections with the High Speed 2 (HS2) rail project. To advance the business case for this project, Khan has earmarked £400,000 in his draft budget, demonstrating a commitment to its development despite the lack of central government funding.
Innovative Financing Models
Khan highlighted the government's willingness to collaborate on innovative financing solutions for both the West London Orbital and the Bakerloo extension. He pointed to the Northern line extension as a successful precedent, which was funded through levies imposed on local businesses and property owners rather than relying solely on government grants. This model could be adapted to secure the necessary capital for the new projects.
A spokesperson for the Mayor confirmed that a mixed funding approach will be essential, involving contributions from the government, Transport for London (TfL), the Greater London Authority, and local sources. This diversified strategy aims to mitigate financial risks and ensure the projects' viability.
Broader Transport Initiatives
While focusing on rail expansions, Khan also emphasised the importance of enhancing outer London transport networks. In line with this, the Superloop bus network will continue to expand, with new routes such as the SL12 from Gants Hill to Rainham scheduled to launch later this year. These efforts are part of a broader vision to improve connectivity across the city, especially as major rail projects are underway.
Khan's announcement underscores a proactive approach to addressing London's transport needs through creative financial mechanisms, ensuring that critical infrastructure developments can proceed despite budgetary constraints.
