Chancellor Rachel Reeves is expected to use next week’s budget to give the go-ahead for the Docklands Light Railway (DLR) to be extended to Thamesmead.
BBC London understands that the Treasury will back the plan, saying it could lead to 25,000 new homes in the area and up to 10,000 new jobs.
The extension of the DLR would see a new line built from Gallions Reach to a new station at Beckton Riverside and then across the river to Thamesmead.
Transport for London (TfL) welcomed the news the government plans to back the extension, saying it would “create green, liveable neighbourhoods” and “improve connectivity across the river by cutting journey times and reducing car dependency”.