London is set to benefit from significant government funding for key infrastructure projects in the upcoming budget. Chancellor Rachel Reeves announced measures that will allocate funds to build a tunnel linking the HS2 rail route from Old Oak Common to Euston station and provide £485 million for Transport for London’s capital renewals program.
In addition to these allocations, London’s boroughs, housing associations, and local councils will also receive support in various forms. Housing associations had hoped for more, but the budget includes provisions such as allowing councils to retain all receipts from council house sales made under the Right to Buy scheme. Furthermore, social housing providers will receive a five-year rent settlement above inflation to support their building programs.
One of the highlights of the budget is the commitment to explore an “integrated” funding settlement for the Greater London Authority from 2026-27. This would give City Hall more freedom and flexibility in spending central government funding, similar to arrangements already in place for other regions like the West Midlands and Greater Manchester.
London Mayor Sadiq Khan expressed his enthusiasm for the additional funding allocated to Transport for London, which is nearly double the amount received last year. This funding will cover rolling stock on the Piccadilly and Elizabeth lines. Khan also welcomed the funds for the HS2 project, noting that they will allow the capital to fully realize the economic benefits of the initiative.
The budget also includes measures to support private investment in the Euston area, with the appointment of Bek Seeley to chair the Euston Housing Delivery Group. This initiative aims to drive forward housing and regeneration projects in the local area.
While there is much to appreciate in the budget, Fiona Fletcher-Smith, chair of the G15 group of London housing associations, highlighted the need for a more substantial rent settlement. She emphasized that the current settlement falls short of what is urgently required, particularly in the context of a ten-year deal.
Overall, the budget for London’s infrastructure and housing sector presents a mix of opportunities and challenges. As the city continues to grow and evolve, the allocation of government funds will play a crucial role in shaping its future development. Stay tuned for more updates on how these measures will impact London’s landscape.
Dave Hill, the publisher and editor of OnLondon.co.uk, provides unique insights and analysis on the city’s political and social issues. Consider supporting this platform and its contributors to access exclusive content and support independent journalism.
