The Government has agreed a loan of up to £1bn that will allow London Underground to fund an extension of the Northern Line to Nine Elms on the South Bank.
The announcement, which came in the Chancellor’s 2012 Autumn Statement, follows months of negotiations between Wandsworth Council, the Greater London Authority and HM Treasury over the financing package for the new Tube link.
The breakthrough has been welcomed by the leader of Wandsworth Council and co-chair of the Nine Elms Vauxhall Partnership Ravi Govindia: “The Northern Line Extension will breathe new life into Nine Elms on the South Bank. It will revive the last dormant district of central London and yield billions of pounds in new economic growth and tax revenues.”
The loan will be repaid through a tariff on private development projects within this 450 acre regeneration area, and through future growth in business rates revenue within a new Nine Elms Enterprise Zone.
The area’s developers support the Tube link and are applying the tariff to their planning applications. There are 27 projects currently in the development pipeline including Battersea Power Station and the new US Embassy.
The proposal would create two new Tube stops – one on Wandsworth Road in Lambeth, the other at Battersea Power Station in Wandsworth.
Boris Johnson, the Mayor of London, said: “An extension to the Northern Line… is hugely significant as Nine Elms is one of the areas with the greatest prospect for new development in the whole of the capital. It will be an incredible confidence boost for developers preparing to invest there and it will also be a considerable boost for local people who will benefit from the new Tube link.”
TfL is currently holding its third and final public consultation on the scheme before the application for a Transport and Works Act Order (TWAO) is finalised in spring 2013.
If planning approval is obtained then construction of the Northern line extension could begin in 2015. Trains could start running in 2020.