A new train line extension will be paid for through borrowing, despite being ‘backed’ by the Government.
Sadiq Khan will borrow the money, despite claiming the Government backed the scheme. (Image: Getty)
Sadiq Khan is facing criticism after it emerged he will borrow the money needed to fund a £1.7billion railway line extension, despite claiming the scheme is being “backed” by the Government. The three kilometre extension to the Docklands Light Railway will be funded from borrowing by Transport for London and the Greater London Authority, with Treasury support expected only in the form of covering a portion of loan repayments.
Neither Transport for London, City Hall, the Mayor’s office nor the Treasury has provided details of how much will be borrowed. The plans, expected to be confirmed in next week’s Budget, will see the DLR extended from Gallions Reach to Thamesmead, with a new station at Beckton. The project is expected to cost more than £1.7billion. Opponents say the price tag works out at around £500,000 for each metre of new track.
At a meeting of the London Assembly on Thursday, Conservative Assembly Member Neil Garrett repeatedly pressed the Mayor on how much money Labour ministers had committed.
He said: “It is not an announcement, it is a pre-announcement of a possible announcement that might come next week […] no actual news.”
Mr Garrett added: “How much actual money has the Government actually pledged?”
Mr Khan replied that funding would be “a combination of a grant from the Government and borrowing” before adding that the final figure was “commercially sensitive”.
The Treasury has denied that a grant will be provided and said support would only come in the form of help with a portion of loan repayments.
Pressed again, Mr Khan said construction would start “in this Mayoral term”, with completion expected by 2030.
Opposition parties have welcomed the extension but criticised how it will be paid for.
Tom Turrell said bringing the DLR to Thamesmead was “long overdue”, but warned that “under this billion pound project” south east London “only gets one extra station”.
He said: “If the Mayor is going to put over a billion pounds on taxpayers’ credit card to tunnel under the Thames he should go the full route and bring the line to Belvedere. It will be cheaper and more efficient to do the extension in one go.”
He added that the extension “is a no brainer” but said City Hall must “make sure we get it right”.
Liberal Democrat Assembly Member Hina Bokari welcomed movement on the plans but said Londoners had been given “warm words” rather than guarantees.
She said: “The news we may finally see the Government press go on the DLR extension is hugely welcome – it is a no-brainer and absolutely vital for unlocking new homes and driving London’s growth. But we still do not know whether the Chancellor will put any actual funding behind it, or simply offer warm words.
“We are now even more concerned that Sadiq’s rail-replacement bus services will be a long-term substitute, not a temporary fix.”
The Treasury said the project would “deliver much-needed new homes, new jobs, and quicker commutes – the building blocks for boosting growth, putting more pounds in pockets.”
