A new report (here) from the London Assembly’s Budget and Performance Committee suggests London could dramatically cut the cost of future transport projects (in some cases by 20% to 50%) by adopting more efficient planning and delivery models used across Europe. 

The report, titled Mind the Funding Gap, sets out a stark reality: major infrastructure schemes in the capital regularly run over budget, over time, and under momentum, with stop–start funding cycles and lengthy approvals pushing up costs year after year. 

Why London Builds So Expensively

According to international cost comparisons included in the Assembly’s investigation, London’s major rail schemes have routinely cost two to six times more than similar projects in Spain, Germany, Italy, and France. Experts providing evidence to the Committee noted that:

• UK underground lines are 2× more expensive than those in Italy or France.
• UK rail electrification costs 3× more than Germany.
• HS2 is forecast to cost 9× more per mile than France’s Tours–Bordeaux high-speed line. 

In contrast, Madrid extended its metro by 35 miles in the late 1990s using a low-cost, rapid-build model that relied on standardised station designs, shallow construction where possible, and a long-term pipeline of continuous work — keeping skills, supply chains and political momentum aligned.

Crossrail 2 Back in Focus

One of the biggest recommendations of the report is for the Mayor and TfL to restart development of Crossrail 2, with a specific focus on reducing delivery costs, standardising designs and identifying long-term financing.

The Committee argues that Crossrail 2 remains essential for London’s future capacity and housing growth, even though work was paused during the Covid-era funding crisis. 

DLR to Thamesmead: The Only Major Scheme Moving Forward

The report notes that among all the current expansion options, the DLR extension to Thamesmead is the closest to deliverability.

This £1–1.6bn project could unlock up to 25,000 new homes and major regeneration sites across Beckton Riverside and Thamesmead. It has government support in principle, but not full funding. 

Other Projects Still Stuck

By contrast:

• the Bakerloo line extension
• the West London Orbital
• major bridge repairs such as Hammersmith Bridge
• and large-scale enhancements around Euston

All face severe funding gaps and uncertain timelines.

Why Projects Stall 

The report identifies systemic issues that consistently drive up London’s transport delivery costs. These include:

• Long, drawn-out development periods (some spanning 20–35 years before construction even starts)
• Stop–start political cycles
• Excessive environmental review lengths (5,000+ pages for some small projects)
• Fragmented supply chains with too many subcontractor layers
• Deep bespoke station designs instead of standardised models
• Lack of skilled planning officers in boroughs causing delays

The report stresses that doing everything at once inflates risk and cost and calls for phased delivery, standardised designs and stable multi-decade planning.

Two fascinating recommendations stood out:

A unified London buried services database

Moving utilities is one of the biggest hidden cost drivers. A city-wide digital map (similar to the new National Underground Asset Register) could save huge sums in the design phase. 

Residents paid a flat fee for construction disruption

Ireland’s Transport Infrastructure Ireland pays households around €2,000 during major works. The report suggests TfL should consider a similar model to reduce objections and speed up delivery. 

London Needs More Control

The report is clear: London cannot deliver major infrastructure under the current centralised funding system.

It calls for:

• greater fiscal devolution
• new land value capture tools
• private investment strategies
• exploring fare revenue models linked to earnings rather than inflation

Without this, London risks decades of underdelivery.

The Committee also urges the Mayor and TfL to publish a new long-term plan for London transport to 2040, setting out a clear, stable pipeline of projects, the key to reducing costs and giving industry confidence to invest. 

image: constructionmagazine.uk