Government urged to use Spring Budget to commit to ‘transformational’ Bakerloo Line Upgrade and Extension
22 February 2024
Southwark Council is proud to support a new impact assessment that shows that upgrading and extending the Bakerloo Line could unlock 20,000 homes, create 10,000 jobs and deliver £1.5 billion boost to UK economy.
Upgrading and extending the Bakerloo Line would have a transformational impact on London – a new report has found. But the project can only go ahead if Government works with the capital to put in place a funding deal.
The Bakerloo Line is an iconic part of the Underground, and a vital piece of economic infrastructure. 920,000 jobs – one in six in London – are within a 12-minute walk of a station. The upgrade would involve new trains and signalling. The extension would take the terminus to Lewisham in the first phase, and eventually to Hayes, adding 14 new stations.
The impact assessment – released today – finds the Bakerloo Line Upgrade and Extension would have a transformational impact on London, by:
- Boosting the economy, creating 9,700 jobs, 190,000 sqm of new commercial floorspace, and generating £1.5bn of GVA;
- Unlocking 20,400 new homes along the length of the extension – and supporting the delivery of thousands more along the existing route – to tackle the housing crisis;
- Supporting sustainable travel, with 150,000 additional public transport trips and 20,800 fewer car trips daily;
- Improving connectivity, with travel time from Old Kent Road to Oxford Circus cut by nearly two thirds from 38 minutes to 13 minutes;
The project would make better use of existing tunnelling infrastructure, making it more cost-effective and less carbon intensive than other major infrastructure projects.
The report also warns of the escalating risks of inaction – including a potential critical failure of the line. The Bakerloo Line has the oldest rolling stock in passenger service in the UK. Built in 1972, when Donny Osmond and Slade dominated the charts and Ted Heath was Prime Minister, the trains are now 16 years beyond their intended lifespan. Maintenance costs are higher than other lines and rising, and the failure rate on the Bakerloo is over four times as high as that on the Victoria Line. 630,500 customer hours were lost last year due to cancellations, up 370% over the last decade.
However, the Bakerloo Line Upgrade and Extension cannot happen without support from government. Transport for London (TfL) has succeeded in boosting passenger numbers and restoring finances after the devastating impact of the pandemic. It is on course to be self-sufficient in day-to-day spending by the end of March. However, as with all major transport networks, TfL will need ongoing support with capital funding to maintain the network and invest in future growth.
The Government announced a one-year capital funding deal for TfL in December. However, this provides only £250m next year, half the £500m - £600m TfL requires annually from government to meet its capital needs. The Chancellor will be setting out his tax and spending plans at the Spring Budget in a fortnight on 6th March.
The Bakerloo Line Upgrade and Extension has been long-planned, and it has overwhelming public support. The last TfL consultation showed those backing the extension outnumber those opposing it by 14 to 1 in Southwark, Lewisham and Bromley, the boroughs covered by the extension.
The Bakerloo Line Upgrade and Extension was identified as a priority project in the recent London Infrastructure Framework produced by London Councils.
The impact assessment was commissioned by Central London Forward – the partnership of the 12 central London boroughs – along with Lewisham Council and Southwark Council. It was carried out by Hatch – a consultancy specialising in transport and infrastructure.
Cllr Kieron Williams, Chair of Central London Forward and Leader of Southwark council, said: “The Bakerloo Line Upgrade and Extension is an investment that would keep our city moving forwards. At a time when we urgently need to get growth back on track, it would boost our economy, create jobs, and unlock tens of thousands of much needed homes, all by making better use of the tunnels we already have beneath our capital.
“But we can’t deliver it alone. To unlock these benefits we need government and London to invest together. At the budget next month, the Chancellor should commit to delivering the Bakerloo Line Upgrade and Extension, and work with London Government and businesses to deliver this transformative scheme.”
John Dickie, Chief Executive at BusinessLDN, said: “Almost one million jobs are located within a short walk of stations on the Bakerloo Line. Upgrading and extending the line would boost the economy by creating new jobs across the capital while also unlocking the new homes that are desperately needed by Londoners. While the one-year capital funding settlement recently agreed by TfL and the Government provides some short-term certainty, it is now important that a multi-year deal is agreed to enable London and suppliers across the country to plan for the future with confidence.”
Andy Lord, Commissioner of Transport for London, said: “We continue to progress work on our plans to upgrade and extend the Bakerloo line. Securing a new fleet and signalling would improve reliability across the line, protecting the future of the Bakerloo line, while bringing new benefits to customers along the line. A further extension of the Bakerloo line to Lewisham and beyond would also provide a step change in connectivity and capacity unlocking much needed new homes and supporting jobs and economic growth both across London and more widely across the UK via our extensive supply chain.
“While we are grateful for government for providing £250m towards our capital investment programme for 2024/25, securing long-term certainty would allow us to start planning properly for future investment. It is vital we get certainty of funding to allow us to move forward with the Bakerloo line Upgrade as soon as possible and in the most cost effective manner. This upgrade is necessary to support the extension which is safeguarded and ready to take through the planning process.”
Jennifer Daothong, Chief Executive of Lewisham Council, said: “London is the beating heart of the British economy and the Bakerloo Line Upgrade and Extension is vital to Lewisham and London’s continued growth. It would create tens of thousands of new jobs and homes, as well as make our capital city greener and more sustainable.
“The project has overwhelming support from local people and a wide range of businesses - and, as this new report demonstrates, funding the scheme would bring benefits that would be felt far beyond London, across the whole country.”
Page last updated: 22 February 2024
