New trains for the Piccadilly Line are fully funded but three other big transport projects needed for the capital remain on pause

London mayor Sadiq Khan (left) wanted more cash from Chancellor Rachel Reeves (right)

Sadiq Khan has expressed his “concern” and “disappointment” with the government spending review announced today (Wednesday 11th) by Chancellor Rachel Reeves.

The London mayor said that while he welcomed a new multi-year funding deal for Transport for London (TfL) from the Treasury, he pointed out there was still a shortage of cash for the Metropolitan Police and three major new infrastructure projects in the capital would not be able to progress with government backing.

The settlement with TfL sets out £2.2billion in capital funding for TfL over four years, including the completion of ongoing projects such as the rollout of new trains on the Piccadilly Line and Docklands Light Railway (DLR).

But future projects such as the expansion of the Bakerloo Line to Lewisham, DLR to Thamesmead and a new West London orbital route for London Overground, all remain unfunded.

TfL is one of the only transport authorities in the world that can cover its own day-to-day operating costs, but government capital investment support is said to be “vital to ensure that the capital’s transport network can continue to be modernised and support economic growth”.

Khan said: “I’ve been determined to stand up for London and it’s good news that we have won extra resources for transport and housing. I have been campaigning for years for a multi-year deal for City Hall and for Transport for London and I welcome this agreement.

“However, I remain concerned that this spending review could result in insufficient funding for the Met and fewer police officers. It’s also disappointing that there is no commitment today from the Treasury to invest in the new infrastructure London needs.

“Projects such as extending the Docklands Light Railway not only deliver economic growth across the country, but also tens of thousands of new affordable homes and jobs for Londoners. Unless the government invests in infrastructure like this in our capital, we will not be able to build the numbers of new affordable homes Londoners need.

“As mayor, I’ll continue to make the case to the government that we must work together for the benefit of our capital and the whole country. The way to level up other regions will never be to level down London. I’ll continue to fight for the investment we need so that we can continue building a fairer, safer and greener London for everyone.”

London Councils, which represents the capital’s 33 local authorities, has welcomed the government’s £39bn boost for affordable housing as a “potential gamechanger” for efforts to tackle the housing crisis in the capital. Boroughs have also welcomed additional investment for children’s social care and temporary accommodation, saying this will help local authorities invest in prevention and reduce the cost of delivering services in the long-run.

However, London Councils warns the “modest” overall increase to council funding means boroughs’ budgets still face an “extremely difficult” outlook in the immediate term and “serious risks” to financial stability, with plans to reform council funding now “make or break” for town hall finances in London.

BusinessLDN chief executive John Dickie also gave a lukewarm response to Reeves’ spending commitments for the capital and said: “The acid test for this spending review is whether the government’s rhetoric on growth is matched with the investment needed to kickstart the economy.

“The chancellor has delivered some welcome additional spending on infrastructure, transport and skills. But it looks like London has been left short-changed.

“The government’s growth mission can only be achieved by unlocking the full potential of London. As a UK-wide engine of growth, the capital accounts for a quarter of the country’s economy. Its substantial net contribution to the public coffers rightly supports spending in other parts of the country but must also enable London to grow.

“While the certainty provided by a four-year funding deal for TfL is welcome, the lack of certainty around delivering shovel-ready projects like the DLR to Thamesmead and Bakerloo Line extension that could accelerate growth, create new jobs and open up sites for tens of thousands of new homes is baffling.

“The significant boost to investment in affordable housing and a long-term rent settlement will go some way towards tackling the housing crisis. But it remains to be seen how much of that money will flow to London where the housing crisis is most acute – poverty in London after housing costs remains the highest in the country.

“The onus is now on the upcoming ten-year infrastructure strategy and the industrial strategy to fill in the blanks as well as ensuring that London has the tools it needs to play its full part in the growth mission through further devolution.”

A London TravelWatch spokesperson added: “The four-year funding settlement for TfL in the chancellor’s spending review today is a welcome step forward in giving greater stability to TfL’s finances and allowing current projects, such as the introduction of new trains on the Piccadilly Line and DLR, to be completed.

“But the lack of extra funding for key projects such as the DLR and Bakerloo Line extensions and the West London Orbital rail link is disappointing – and it is unclear whether the £2.2bn allocated will be enough to enable TfL to make good past under-investment in maintaining and renewing the existing network.

“We look forward to seeing further details in the coming weeks.”

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