London could deliver major transport infrastructure projects
between 20 – 50 per cent cheaper if it followed processes in
place in other major European countries, according to a
London Assembly Budget and Performance Committee
report.
The extension of the metro system in Madrid, Spain, between 1995
and 1999,[1] was notable
for a low-cost and speedy approach, with a 35-mile extension of
the network costing the equivalent of US$2.8 billion (£2.1
billion) in 2024 prices.
However, the extension of the London Underground Jubilee line
cost ten times as much per mile.
The Committee has today
published its report – Mind the Funding Gap - calling
for Transport for London (TfL) to review the delivery of its
largest transport infrastructure projects since 2015 against a
checklist to produce an infrastructure cost audit, aiming to
identify what recurring issues have affected London's transport
infrastructure projects recently, and what potential options
there are to reduce costs.
TfL has an ongoing capital programme and has delivered major
projects in recent years such as the Elizabeth line, Northern
line extension and Silvertown Tunnel. Other key schemes,
including the Four Lines Modernisation programme for the Tube,
are ongoing.
However, other proposed upgrades including Crossrail 2, the
Docklands Light Railway (DLR) extension – which has recently been
backed by government in the 2025 Autumn budget - and repair of
Hammersmith Bridge have languished for years without the funding
required deliver them.
The proposed DLR extension from Gallions Reach to a new station
at Beckton Riverside, and then under the river to Thamesmead, is
expected to cost £1.7 billion[2]. In the government's
Autumn Budget, it announced that "the majority of the costs
will be met by TfL and GLA, with the government also contributing
over the long term." It will also work with the GLA for
options of "innovative financing to support the delivery of
infrastructure projects in the capital." [3]
Based on the evidence heard during the investigation and other
studies, the Committee has produced the
following checklist to be considered by TfL when it plans and
develops new infrastructure projects:
- Reducing the length of development periods
- Avoiding ‘stop-start' delivery
- Phasing of delivery where appropriate, rather than delivering
‘all in one go'
- Reducing the length of project delivery periods, which can
reduce risk
- Avoiding over-scoping of projects
- Reducing the length of environmental impact reviews
- Addressing the complexity of the supply chain
- Improving the capacity of planning officers
- Developing a strategic view
Other recommendations in the report include:
- The Mayor and TfL should restart the promotion and
development work of the Crossrail 2 project with a particular
focus on how delivery costs can be minimised and how the project
will be financed.
- The Department for Transport, the Mayor and TfL should
produce and publish a strategy for funding new infrastructure via
private investment. This should include a standard model for the
long term that allows Tax Increment Finance from new revenue
streams to be enabled from new transport infrastructure.
Chairman of the London Assembly Budget and Performance
Committee, AM, said:
“Delivering new transport infrastructure has wide-reaching
benefits for London, Londoners, and the wider country, yet
challenges remain with funding and spiralling development
costs.
“We have seen some highly successful schemes delivered in
recent years, but have now seen a number of schemes stall for
varying reasons.
“Through our investigation, we sought to understand how major
cities in other countries are delivering large scale transport
infrastructure projects, at a fraction of the cost we seem to
face here in London.
“We heard evidence that shows London could deliver major
infrastructure projects between 20 and 50 per cent cheaper if we
adopted some of the planning and financing processes in
neighbouring countries.
“Ensuring London has a pipeline of infrastructure
improvements highlights London's appeal as a place for people to
live, work and invest, and we all want to see our city
thrive.
“We are urging the Mayor to implement our cross-party
recommendations, which could help London deliver the transport
network the city wants and needs.”
Notes for editors:
- Works in Progress, How Madrid built its metro
cheaply, 5 December 2024
-
Treasury expected to back
extending London's DLR to Thamesmead - BBC News
-
Budget 2025 (HTML) -
GOV.UK
- Read the embargoed report in full attached.
