As a result of last week’s Budget announcement, major transport projects may begin across London, in what has been described as “the most radical act of decentralisation in a generation” by Chancellor John Healey.
Acclaimed as a “devolution revolution” by Major Sadiq Khan, the Budget’s changes will give London greater control over transport funding - unlocking billions of pounds for infrastructure projects across the capital while decreasing its dependence on central government.
Four major projects are set to receive funding: Tube upgrades at Euston; plans to bring international rail services to Stratford International; the Bakerloo Line extension; and the proposed West London Orbital. The announcement puts funding and decision-making powers at the centre of the next phase for several infrastructure proposals in the capital. However, business cases, legislation, borrowing and funding decisions, and individual project approvals will still need to be addressed before any changes can be made.
The Mayor of London could get help funding the southward extension of the Bakerloo line, from its current terminus at Elephant & Castle into south-east London.
The first phase could include new stations at Old Kent Road and New Cross Gate, with the line potentially running up to 27 trains an hour. A possible second phase would extend the line from Lewisham through Catford, Sydenham and Beckenham to Hayes, taking over an existing National Rail route.
If delivered, the extension could help improve connections to jobs, education and other services across south-east London, while easing pressure on existing transport routes – but funding is a major hurdle for the project, with the initial stretch from Elephant and Castle to Lewisham estimated to cost between £5.2 billion and £8.7 billion.
TfL is scheduled to hold a public consultation on the scheme between December 2026 and February 2027.
The West London Orbital is a suggested new London Overground route that would connect Hendon in north London with Hounslow in west London, using existing railway lines that are currently mainly used by freight trains. The proposal is for up to six trains to run per hour and for four new stations to be created at Neasden, Harlesden, Old Oak Common Lane and Lionel Road.
To fund the project, and the Bakerloo line extension, the government plans to allow the Mayor to introduce a successor to the Business Rates Supplement (BRS) – which is currently helping to pay for the Elizabeth line and due to end by 2041.
Plans to bring cross-Channel rail services to Stratford International be funded by the proposed Mayoral Strategic Authority Business Rates Retention Zones referred to in the Budget. Please click here to continue reading about this particular proposal.
The proposed redevelopment of Euston includes improvements to the Tube station, the new HS2 station and the surrounding area. In the Budget, the Government confirmed plans to use a Tax Increment Financing (TIF) scheme to help pay for infrastructure at Euston, subject to a full business case being developed by the Greater London Authority and Camden Council. The scheme would use business rates income generated by growth in the area.
To read CILT(UK)’s opinion on the Autumn Budget, please click here.