Sadiq Khan looking at ‘innovative’ ways of funding West London orbital

London Overground train

Businesses who will benefit from the planned new rail link may be asked to contribute to its construction

Mayor of London Sir Sadiq Khan has said he is looking at ‘innovative’ ways of funding the West London Orbital.

He announced last week that he had set aside £400,000 in the draft budget for 2026-27 for getting the proposed overground rail route off the ground.

The West London Orbital is intended to link stations on the Elizabeth line with the HS2 route in west London, running from Hounslow towards Hendon and West Hampstead in the north and using existing, underused rail lines.

READ ALSO: Mayor of London allocates funds for West London Orbital

While Chancellor Rachel Reeves announced funding for the expansion of the DLR to Thamesmead in the autumn budget, she conspicuously did not announce any money for the West London Orbital project, leaving the Mayor to find the money for it himself. According to the New Statesman they had quite a row about it.

Mayor of London Sir Sadiq Khan

Mayor considering other ways of financing the new line apart from general taxes

Mayor Khan has now told My London:

“What the Government has said, which we welcome, is that they’re going to work with us on innovative financing in relation to the West London Orbital and in relation to the Bakerloo Line extension.

“Why is that important? Because that fiscal devolution will allow us to consider other ways of funding infrastructure in London.

“Councils in west London have been brilliant in terms of supporting the West London Orbital.

“We announced in our draft budget an initial £400,000 and so we’re confident that with the work with the councils and the work with TfL and with support from the Government we’ll come up with an innovative financing scheme to get the West London Orbital off the ground”.

Construction of the Battersea Power Station redevelopment; photograph Creative Commons

What does he mean by “innovative funding”?

Members of the London Assembly will be quizzing the Mayor about his draft budget next Monday (26 January).

TfL have used ‘innovative funding’ to fund projects before. When the Northern Line extension was built, to provide the Battersea Power Station complex with its own tube station, the Greater London Authority was allowed to borrow £1bn from the Public Works Loan Board to finance its construction.

The money was to be paid back partly from contributions from developers from the Battersea Power Station and Nine Elms Battersea sites and partly from tax increment financing, using future business rates from the development of the Vauxhall Nine Elms Battersea area over a period of 25 years.

On that basis, the businesses which have been campaigning for the West London Orbital can expect to meet some of the cost.

READ ALSO: West London business group campaigns for support for new rail service

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