Budget Expected to Green-Light DLR Extension to Thamesmead

Chancellor Rachel Reeves is poised to approve plans for a major Docklands Light Railway (DLR) extension to Thamesmead in next week’s budget, BBC London understands.

Treasury backing would unlock a long-awaited transport link that ministers believe could pave the way for 25,000 new homes and up to 10,000 jobs in one of London’s most isolated corners.

The proposal would see a new branch constructed from Gallions Reach to a station at Beckton Riverside, before crossing the Thames to Thamesmead.

While full government funding is not expected, Treasury support would give Transport for London (TfL) and the Greater London Authority the ability to borrow the roughly £1.7bn needed, with the government potentially helping with repayments over time.

TfL welcomed the expected sign-off, saying the scheme would support the creation of “green, liveable neighbourhoods” and significantly improve cross-river connections by cutting journey times and reducing reliance on cars. If approved, work could begin in 2027, with services running in the early 2030s.

The plan is a major priority for Mayor Sadiq Khan, who described the anticipated backing as “a massive vote of confidence in London.”

“It will not only transform travel in a historically underserved part of the capital, but also unlock thousands of new jobs and homes,” he said. “This project is a win-win for London and the wider UK economy.”

Local representatives and business groups also lined up in support. London Assembly member Len Duvall called the expected commitment “fantastic news,” urging government and TfL to move quickly into planning and procurement. John Dickie, chief executive of BusinessLDN, said the DLR extension would “unlock private investment into housing in Thamesmead” and support long-term economic mobility.

The area was shortlisted only last month as a potential site for one of the government’s new towns under ministers’ drive to “get Britain building again.”

Winners and losers

While approval for the DLR link will be seen as a major victory for City Hall, the budget is unlikely to offer similar progress for other major capital projects.

Long-standing campaigns to extend the Bakerloo line to Lewisham or to secure funding for the West London Orbital appear set to remain on hold.

TfL is also seeking to take over the Great Northern suburban line through Crews Hill—another proposed new-town location—but it is unclear whether the chancellor will make any announcements about that bid next week.