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Reeves Set to Underwrite DLR Thamesmead Extension in Budget

Treasury backing would let TfL borrow to build a £1.7bn river-crossing link viewed as the trigger for major housing-led regeneration in Thamesmead.

Overview

  • Chancellor Rachel Reeves is expected to give the go-ahead next week by effectively underwriting the Docklands Light Railway spur to Thamesmead rather than providing the full cost upfront.
  • The extension would branch from the Beckton line after Gallions Reach, add a Beckton Riverside station, tunnel under the Thames, and terminate at a new Thamesmead station.
  • Project costs are reported at about £1.7bn, with some estimates up to £1.9bn, and TfL plans to repay long-term loans enabled by the Treasury guarantee.
  • Construction is expected to begin in 2027 with opening targeted for the early 2030s, commonly cited as 2032, pending final Budget confirmation.
  • Officials say the scheme could unlock 25,000–30,000 homes, create around 10,000 jobs, attract roughly £18bn in private investment, and cut journeys to hubs such as Stratford and Canary Wharf to about 25–30 and 20–25 minutes respectively.