Coalition stakes funds on southern rail extensions and takes a punt on Crossrail 2

A loan will allow a London Overground extension to take off

A loan will allow a London Overground extension to take off

The Government's latest National Infrastructure Plan sets out £155m in funds for infrastructure to unlock southern England housing sites, and finds the cash to make the case for future new rail schemes.

On the eve of the Autumn Statement, the plan announces £100m for the infrastructure to get a new garden city off the ground at Ebbsfleet in Kent, backed by a review of transport provision there, including Crossrail 1, High Speed 1, Southern and South-Eastern rail services. The Government believes this investment and review could allow up to 15,000 homes to be built.

In east London, plans for 10,000 homes at the Barking Riverside site will be made possible through £55m - in the form of a loan - to support the extension of the London Overground to the site. 

In addition, the Government announces £2m for the work to develop a comprehensive business case for Crossrail 2, to include a "full options appraisal of all potential transport projects in London including the extension of the Bakerloo line". Crossrail 2 could cost £20bn, the Mayor of London has acknowledged.

Ministers also pledge to lay the long-awaited new national planning policy statement on transport before Parliament later this month in a bid to provide greater clarity for transport projects seeking permission. The draft was heavily criticised by transport planners back in the spring.