Thamesmead DLR extension receives broad approval, but funding challenges loom

It’s not the biggest surprise ever, as a consultation into whether the Docklands Light Railway (DLR) should be extended to Thamesmead was widely supported.

After all, if you ask people if they want better public transport, they’re unlikely to say no thanks.

Proposed extension (c) TfL

The consultation did throw up a few interesting comments and alternative ideas for ways of improving local transport. The oft-dismissed suggestion of extending the London Overground kept being suggested, even though it would mean a worse service than could be offered by the DLR.

There was even a suggestion from one person that they should extend the London Overground to Convoys Wharf in Deptford, which was a bit odd.

TfL also received feedback that called for the extension beyond Thamesmead to Bexley, Belvedere or Abbey Wood, or further into Kent and Essex. The report notes that these extensions would not be included in the current plans, but that designs would enable extensions to be added later.

In total, the consultation received 1,283 responses, of which 1,254 came from the public and 29 responses from a range of stakeholder groups. Just over half (58%) of respondents thought the extension would make their journeys quicker around their local area, and 75% of respondents said that the proposals would make journeys into the wider east and southeast London quicker.

In addition to the consultation, they ran sample polling in Beckton, Gallions Reach, Thamesmead and Abbey Wood. Of the 356 people polled, 85% supported or strongly supported the proposals.

If funding and appovals are granted, then a new DLR station would be built at Beckton Riverside, with a tunnel built under the River Thames linked to another new DLR station at Thamesmead. It would build on experience from 2009 when the DLR was extended to Woolwich Arsenal, tunnelling beneath the River Thames, with housing growth following in areas including Woolwich, Canning Town, and the Royal Docks.

Extending the DLR would support up to 30,000 new homes and up to 10,000 new jobs in the wider area.

TfL and its partners submitted a Strategic Outline Case (SOC) to the Government in 2023 outlining how an extension of the DLR could have a transformative effect on the area.  An interim Outline Business Case (OBC) will now be developed, and this work is anticipated to be completed in spring 2025.  The OBC will respond to Government feedback to the SOC and form the basis of future development and funding discussions.

The scheme is currently unfunded so part of this work includes developing a funding and financing strategy for the project, which would likely draw on funding from the private and public sectors, including TfL, local, regional and national sources.

Funding the extension is the main barrier to building it.

Although TfL is expected to operate without a national subsidy, it relies on national government funding for large extensions and needs to put forward a case for how the government investment is repaid through increased economic activity. With a potential for 30,000 homes being built in the area if the DLR does get the extension, the economic case would usually be seen as very strong.

The extension has been previously expected to cost around £1.7 billion, although that bill will only rise each year that construction is delayed.

Some funding would also likely need to come from the local councils, which might be harder. Even with the style of borrowing available to the councils that was used for the Northern line extension, where they borrow against future tax revenues, the councils have said it’s difficult to see how they can help finance the extension.

TfL aims to agree on an affordable solution by 2025 to enable construction to begin as early as 2028 and open the DLR extension to customers in the early 2030s.

Alex Williams, TfL’s Chief Customer and Strategy Officer, said: “It is great to see support to extend the DLR from Gallions Reach to Thamesmead via Beckton Riverside, which presents a crucial opportunity to boost connectivity by linking two major growth areas with two new accessible stations.

“We will now progress work on plans for the cross-river extension of the DLR, which could see customers benefit from the early 2030s, and continue to discuss funding options with all parties.”