London property sector calls for 10-year funding plan for TfL and commitment to deliver ambitious Bakerloo line extension, Euston transformation and establish a timeline for Crossrail 2
The London Property Alliance (LPA), which represents the leading real estate developers and investors in central London, has called for the Chancellor to set out a clear plan for investment into the capital’s transport infrastructure as part of the Comprehensive Spending Review in order to drive growth across the UK.
The LPA has long promoted the benefits of investment in infrastructure across the UK. The recent announcements of investment in Northern transport infrastructure are welcome, but must be complemented by investment in London, the most economically productive area in the UK. London’s Central Activities Zone (CAZ), which equates to roughly ‘travel zone 1’, contributed £315bn to the UK economy in 2024, 11% of the total national output, and supports 2.2 million jobs.
The LPA highlights that improvements to the capital’s transport infrastructure can serve as a catalyst for investment and job creation, with the opening of the Elizabeth line in 2022 leading to 171 hotel openings, 2,666 new food and beverage outlets and 12 museums which were vital to London’s economic recovery post-COVID.
However, Transport for London’s (TfL) capital programme is significantly smaller than that of its main international peers. According to analysis by the LPA, TfL’s capital expenditure programme for 2022/23 – 2026/27 equates to £1.86bn per annum, just 11% of the funding slated for New York state’s MTA and 44% of that of Paris region’s île de France Mobilités (IDFM).
Meanwhile, the LPA is calling on the Chancellor to look at how major infrastructure projects, such as the proposed Bakerloo line extension and Euston terminal can be funded using public and private finance to improve connectivity for workers and visitors. It is also calling for more certainty around the timeline for Crossrail 2.
Charles Begley, Chief Executive, London Property Alliance said: “The London Property Alliance has long championed the benefits of investment in transport infrastructure to support UK-wide growth, including advocating for several of the schemes in the north of England recently granted funding by the Chancellor.
“But it is not a zero-sum game. With London’s population approaching 10 million and amid fierce competition from cities like Paris and New York, continued investment in the capital is essential. As the UK’s economic engine, a thriving London supports growth across the country. A 10% rise in central London’s output adds over 1% to the UK’s total GDP, making it vital to the Chancellor’s growth mission.
“Now is the time to set out a viable funding plan for TfL and be bold in providing a clear timetable for delivery of projects such as the Bakerloo line extension, Euston and Crossrail 2. With so many demands on the public purse, we encourage the Chancellor to look at all financing options, including increment finance mechanisms in London, to help get badly needed projects off the ground sooner rather than later.”
