Government to aid DLR link to airport

PLANS to improve London as a major international centre were boosted today after the Government agreed to underwrite the £180m cost of extending the Docklands Light Railway to City Airport.

The extension, which will provide a direct link from the airport into the city centre, had been in doubt because Transport for London feared it would not be able to pay for the project. If Mayor Ken Livingstone had gone ahead without Government help, he would have been forced to shelve other vital transport schemes. Ministers have given TfL what now amounts to a credit note to get on with the job of inviting bidders to build the link.

Labour sources said ministers were forced to act to help boost the party at the next General Election. It follows widespread dissatisfaction among London voters over the poor state of public transport - particularly the Tube.

The DLR deal will enable ministers to boast of 'guaranteed' improvements to transport when voters go to the polls. The link will also accelerate development of 3,500 houses in nearby Silvertown.

Livingstone said it was hoped to begin work on the extension by the end of this year. 'There is now a growing consensus among ministers that the perverse workings of the capital's finance and planningregimes cannot be allowed to unduly delay the vital transport improvements on which London's economic development depends.'

There are also hopes that a similar arrangement will enable work to start on Crossrail - a twin-bore tunnel through the centre of London.

? Railtrack today admitted that because of the huge cost of track improvements, it may limit its tilting trains to less than their 140mph full speed north of Manchester.