Major transport infrastructure projects across London could move closer to delivery following the announcement of new funding and fiscal powers for the capital in the Chancellor’s Autumn Budget last week.
The measures, described by Mayor of London Sir Sadiq Khan as a “devolution revolution”, are intended to give City Hall greater control over the money it raises and reduce its reliance on central government funding.
Four major transport schemes have been identified as potential beneficiaries of the changes: Tube upgrades at Euston, the introduction of international rail services at Stratford International, the Bakerloo Line extension and the proposed West London Orbital railway.
The Government’s announcement represents a significant step towards giving London greater financial control over its infrastructure investment, although individual projects will still need to progress through business cases, funding agreements, borrowing arrangements and the necessary approvals before construction can begin.
Transport for London (TfL) has previously highlighted the need for additional funding to progress both the Bakerloo Line extension and West London Orbital proposals.
The Bakerloo Line extension would take the Underground further into south-east London, improving connectivity and supporting housing and economic development. The West London Orbital would create a new rail connection across the capital, making use of existing rail infrastructure to link areas currently less well served by the network.
At Stratford International, the proposed introduction of cross-Channel rail services would give the east London station a new international role, potentially bringing significant benefits for employment, investment and tourism.
The Euston proposals include improvements to the Underground and the development of the wider Euston knowledge quarter, supporting regeneration and new homes and employment opportunities around the major transport interchange.
Khan welcomed the Budget announcement, describing it as a “really positive and significant day for London”.
He said: “After lobbying on the issue for many years, I’m delighted that the Government will help us to bring cross-channel rail services to Stratford International – making this station truly international for the first time. It will open up huge opportunities for jobs, investment and tourism.
“The Government has also taken significant steps to devolve transformational new powers and funding to the capital, alongside other communities around the country.
“Working with Number 10, we’re delivering the largest devolution of powers to London seen in a generation.
“By giving London the ability to keep more of the money we raise, we can invest billions of pounds more in our future, helping to finally unlock transformational infrastructure projects such as the West London Orbital, the Bakerloo Line Extension and the Euston knowledge quarter project, supporting tens of thousands of new homes, jobs and economic growth.”
The changes form part of a wider Government programme to transfer greater powers and financial responsibility to regional and local authorities.
For London, the ability to retain and reinvest more locally raised revenue could provide a more sustainable basis for long-term transport infrastructure planning, allowing major schemes to be developed with greater certainty over future funding.
However, the Budget announcement should not be taken as confirmation that all four projects are now fully funded or ready to proceed. Their delivery will depend on the development of individual business cases, agreement on borrowing and funding, and the necessary statutory and project approvals.
