Mayor welcomes huge boost to capital's economy

29 November 2011

The Mayor of London, Boris Johnson, today welcomed the coalition Government's plans to invest heavily in London's infrastructure, driving growth with thousands of new jobs and securing the capital's global competitiveness.

Key commitments from the Chancellor of the Exchequer's Autumn Statement to Parliament include:

- supporting the extension of the Northern Line to Battersea and the creation of new stations at Battersea and Nine Elms which will help deliver an estimated 16,000 new homes and 25,000 new jobs.

- building a new crossing across the Lower Thames east of London, for example Dartford. The Government has identified three possible locations for a crossing which it will consult on in 2013 as well as exploring options for tackling Junction 30 of the M25 and pressures on the A13 corridor.

- working with the Mayor and Transport for London to explore options for proposed other additional river crossings, for example at Silvertown, and encouraging pension funds to provide much of the investment

- a commitment to an open debate to explore the capital's future airport capacity needs including the potential for a new airport in the Thames Estuary

- providing £80 million to support the Southern Rail franchise’s procurement of 130 new carriages to operate in south London.

- investing millions to accelerate the planned improvements to junctions 23-27 of the M25 

- extending the Oystercard travel payment system outside London to cover more of the South East's transport network

- £130 million for London's transport budget to keep the January fare increases down to RPI+1 per cent rather than RPI+2 per cent

- investment from a new £100 million urban broadband fund that will see London become a 'super-connected city’ with 80-100 megabits per second superfast broadband

- a share of the £600 million fund to create an estimated 100 additional Free Schools by the end of this Parliament and a share of the additional £600 million for school places available from 2012-13 to help local authorities with the greatest demand.

The Mayor of London Boris Johnson said:

"This huge commitment to London is fantastic news that will significantly boost jobs and growth, keep the capital moving during the downturn and help us address the capacity issues that are critical to it remaining globally competitive. Maintaining London's position as the motor of the UK economy will return huge revenues to the exchequer that will benefit the whole UK for years to come.

"Most importantly it further unlocks the massive potential of two long neglected areas of the capital in Nine Elms and east London, creating desperately needed jobs and apprenticeships and improving the lives of the thousands of Londoners."

"This is a terrific settlement which not only delivers immediate support to the economy but also commits to an open debate on airport capacity to secure London's position as a major international transport hub."

The Mayor will immediately develop a new fares package for 2011 using the Government's financial injection into his budget that will see the annual rate of fare rises reduced.

 

Notes to Editors

1. Support of the extension of the Northern Line to Battersea is subject to a commitment by April 2013 from a developer to develop the site and make agreed contributions, after which the Government will consider allowing the Mayor of London and partner authorities to borrow against the Community Infrastructure Levy (CIL) to support this scheme. It is also considering making the area an Enterprise Zone to further support business growth