Rachel Reeves is set to announce funding for an extension of the Docklands Light Railway (DLR) during next week’s budget, aiming to facilitate the construction of thousands of new homes. According to a source from the Treasury, the Chancellor is anticipated to support the DLR’s extension to Thamesmead, a location in south-east London that has lacked public transport options, which has been cited as a barrier to developing a riverside site for potential new housing.
The extension project is estimated to cost around £1.7 billion and has received support from London Mayor Sadiq Khan. The proposed route would extend the DLR from Gallions Reach, near London City Airport, to Thamesmead, including a new station at Beckton.
Currently, travel times from Thamesmead to the City of London take approximately one hour, while trips to Stratford take between 45 to 55 minutes. The new DLR line could reduce these travel times to 35-40 minutes and 30 minutes respectively. The project is expected to unlock land for around 25,000 new homes and create up to 10,000 jobs, along with generating nearly £18 billion in private investment in the area.
In his remarks, Mayor Khan emphasized the significance of the DLR extension, stating that it would enhance transportation in an historically underserved region and support job and housing growth, thereby benefiting the broader economy. The announcement next week is keenly awaited, as the DLR’s expansion appears to be a critical step toward urban development in Thamesmead.
Source: https://www.theguardian.com/uk-news/2025/nov/20/rachel-reeves-docklands-light-railway-extension-funding