Havering (Parliament Politics Magazine) – Plans for a new tram route in north-east London have stalled due to a funding shortfall, raising concerns over future transport development in Havering.
The Standard can disclose that the local town hall’s lack of finance has caused plans for a new tram route through northeast London to halt.
Since the majority of the area’s rail and Tube links only offer east-west connections with central London or Essex, Havering Council had stated in August 2023 that it would look at the possibility of a “north-south tram” through the borough.
After an earlier study before the epidemic, council leader Ray Morgan had stated that authorities will commission a new feasibility assessment to “scope out” whether tram or other transit upgrades might become a reality.
He maintained that “now is the time to do this,” since there are independent plans underway to build a new data center on the Havering-Essex border.
But almost two years on, the authority has now revealed that no further research into the concept was carried out.
A council spokeswoman told the Standard:
“We have as yet not commissioned the further phases of the study, which would include an assessment of options and developing a strategic outline business case, because we do not have the finances to do so.
However, we are expecting some positive developments in the borough which will enable us to fund further work on this through obtaining Section 106 monies and other funding.
For example, the proposed data centre, or other developments that deliver jobs and housing for Havering residents.”
The term “Section 106 monies” refers to funds obtained by the council through agreements known as “Section 106 agreements,” in which developers consent to contribute a certain amount of money to enhance local services in exchange for obtaining planning permission for a new housing or infrastructure project.
The council had recommended that the tram go from Harold Wood via Romford and Upminster before arriving at the projected railway station at Beam Park in Rainham, which is the site of a major housing development with thousands of homes.
However, the exact route for the tram has not yet been determined.
Funding shortages that cause planned projects to languish can lower community morale and diminish public confidence in local government.
Havering’s spokeswoman continued:
“We have not been idle around this and have been lobbying for greater investment in our infrastructure.
This is why we are pleased that TfL are consulting on a new Superloop [express bus] connection in the borough which will travel north/south and will go some way towards solving the problem.
In addition, further work needs to take place to unblock the proposed Beam Park station so it creates additional impetus and infrastructure to improve this north-south connectivity.”
Havering is not alone in its financial predicament; local authorities across have warned that they are being forced to make unfeasible decisions due to the escalating expenses of social care and temporary housing.
Havering was reportedly on the verge of going bankrupt in February 2024, a few months after Mr. Morgon had affirmed the council’s intention to move on with investigating the “north-south tram” idea.
Only a £54 million loan from the government allowed the authority to approve its budget for the upcoming year.
Additionally, Havering had to indicate that it was willing to implement a number of significant cost-cutting measures before the loan could be granted. These included reviewing its bin collections, dimming lighting, and ceasing to spend money on Christmas decorations.
By January of this year, the council had approved plans to convert vacant office buildings into temporary housing for borough homeless families.
According to a report released last week by London Councils, the local government body for the city, the boroughs in the capital collectively spent at least £330 million more than they should have on homelessness.
The cost of temporary housing is rising throughout London in part because more people are using more costly nightly paid lodging, such as hotels, as a result of landlords terminating their agreements with boroughs, either to sell their property or to find tenants willing to pay higher rents on the open market.
How will the lack of funding impact local residents and businesses in Havering?
Residents will still have few options for north-south public transportation in the absence of the tram, which will make it more difficult to get to work, school, healthcare, and recreational opportunities around the borough.
Those without access to private vehicles may be particularly disadvantaged by this.
Better transportation connections are known to boost local economies by drawing in investment, assisting start-up companies, and drawing more customers to already-existing establishments and services.
Havering might lose out on these financial advantages if the tram project is postponed or cancelled, which could result in fewer job openings and slower company expansion.
Reliance on automobiles is anticipated to continue to be high in the absence of new public transportation infrastructure, which would exacerbate traffic jams, air pollution, and related health problems. Locals may find the area less appealing as a result.