Does the comprehensive spending review offer overlooked opportunities for London?
New funding offers London boroughs a chance to unlock long-term regeneration.
Since the Comprehensive Spending Review (CSR) was delivered last week headlines have focused on disagreements between Chancellor Rachel Reeves and London Mayor Sadiq Khan, but does this negative outlook overlook a huge opportunity for the London boroughs?
While the prevailing Government and media narrative has been that other regions of the UK have benefitted to the detriment of London this is not quite accurate. It is true that big capital projects like the extension of the Bakerloo Line have not received the funding commitment that was hoped for, however the Chancellor said she is open to working with Transport for London (TfL) on projects like the Docklands Light Railway (DLR) extension to Thamesmead.
In addition to this the CSR provided the largest multi-year settlement for London in over a decade, with £2.2 billion of funding between 2026-27 and 2029-30 for TfL’s capital renewals programme to replace ailing tubes, improve signalling and boost bus infrastructure.
London will also benefit from the £39 billion for social housing and the 3.1% annual increase in council budgets from central government, these policies as well as the 10-year social housing settlement offer a level of certainty for borough councils and TfL over the coming years.
Anecdotally Steer has already heard and seen many parts of London dusting off and refreshing their business cases for major developments and regeneration projects. With the financial picture more certain in the long-term each borough hopes that benefits can cascade into their area, offering them a chance to follow in the footsteps of regeneration success stories Brent, Havering and Barking in Dagenham.
The funding awarded to London represents an opportunity for Boroughs to finally get back on track after a challenging fiscal environment since the COVID-19 pandemic.
While focus areas like West London Orbital did miss out on funding from the Government and TfL may feel as though it’s lost out when eyeing shiny projects in other regions like East West Rail, focusing on the positives and taking advantage of this moment could bring big rewards.
How can Steer help?
Steer is ready to use our expertise across transport, economics and development to help every part of London succeed. Whether it’s road safety, boosting active travel or place-making initiatives we are ready to use our years of experience in masterplanning, spatial planning and project evaluation to help London’s communities thrive.
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