£2.4m allocated for Bakerloo Line Extension

Southwark Council has agreed to allocate more than £2.4m in CIL funding to ensure the Bakerloo Line Upgrade and Extension (BLUE) can go ahead.

Community Infrastructure Levy (CIL) is money raised on development in the borough. Alongside S106 payments, CIL is one of the ways in which developers can make a direct, financial contribution to improving local infrastructure and delivering social value.

The decision to allocate this CIL money was made by Southwark Council’s Cabinet at a meeting last week.

Most of the funding will be used to ensure that, when constructed, the new Bakerloo Line tunnel doesn’t impact a new housing development at 634-636 Old Kent Road.

This site, owned by Hexagon Housing Association, has planning permission for 46 new homes. Hexagon intends to build these homes as part of a 100% affordable housing scheme.

However, the site is located directly above the route of the proposed Bakerloo Line Extension (on land safeguarded in 2021, after planning permission for the new homes was granted). The CIL funding will be used to future-proof the site and mitigate any risk associated with the housing development above.

In addition, the Cabinet agreed to contribute £30k in CIL funds towards a Bakerloo Line Extension Funding Study.

Southwark, together with TfL, Lewisham Council and Central London Forward, has commissioned a study to assess potential sources of local funding to contribute towards the capital costs required for the construction of the Bakerloo Line Extension. The study will help inform discussions with the Government about funding and the approach to preparing a Transport and Works Act order.

The cost of the study will be shared between the four organisations involved (Southwark’s share being £30k).

The Bakerloo Line Upgrade and Extension (BLUE) project will deliver huge benefits for Old Kent Road. These include improving journey times, creating jobs and doubling the number of new homes that can be built in the neighbourhood.

You can read more about the BLUE and its benefits at BacktheBakerloo.org.uk

The Cabinet meeting took place on 7 January 2025 at the newly restored Walworth Town Hall.

The full report is available on the council website.