Reeves and Khan Clash Over Local Transport Funding
Mayor angry over lack of cash for Hammersmith Bridge and West London Orbital
The Chancellor (left) reportedly ordered the Mayor (right) to get out of her office
December 23, 2025
Expectations of a smooth partnership between City Hall and the new Labour government have been tested in recent weeks, as disagreements over transport funding have spilled into public view. Despite both sides insisting relations remain constructive, a series of disputes over major infrastructure projects — from Hammersmith Bridge to the Piccadilly line and the West London Orbital — have highlighted the gap between the Mayor’s ambitions and the Treasury’s spending priorities.
The exchanges have ranged from formal disagreements over the spending review to reports of a heated meeting between Mayor Sadiq Khan and Chancellor Rachel Reeves in which she reportedly ordered him to get out of her office. While the Mayor has described the discussions as “fraternal”, the disputes have underscored the political and financial pressures facing Transport for London (TfL) as it seeks long-term investment.
One of the most visible flashpoints is Hammersmith Bridge with Sir Sadiq pressing for a clear funding commitment to complete the stabilisation and strengthening works needed to fully reopen the structure to motor traffic.
The Chancellor has said she will “work with” the Mayor on the issue but has not committed new Treasury money, prompting frustration at City Hall. Sir Sadiq publicly criticised the spending review for failing to address what he sees as essential infrastructure needs in the capital. For now, the bridge remains in limbo, with no confirmed timetable for full restoration.
Another point of tension is the future of the Piccadilly line, where £2.9 billion has already been invested in a new fleet of trains. This new stock is designed to increase capacity, improve reliability and enable stopping at Turnham Green throughout the day.
However, without the long-planned signalling upgrade, the benefits of the new stock will be limited. The modern trains cannot deliver the full uplift in frequency or the operational flexibility they are capable of without modern signals. The signalling programme does not appear to be a top priority with TfL’s messaging on future investment focusing on the Bakerloo line extension and the West London Orbital (WLO).
The Mayor has been WLO as one of his top priorities. City Hall argues that the orbital rail link — connecting Brent Cross, Old Oak Common, Acton, Chiswick, Brentford and Hounslow — would unlock thousands of homes and jobs, particularly around the Old Oak development zone, which is expected to become one of the capital’s most significant regeneration areas.
TfL has repeatedly stressed the economic benefits of the scheme, positioning it as a project that would support growth not only in London but across the UK through its supply chain about two thirds of which is based outside London. The Mayor has also linked the WLO to the arrival of HS2 infrastructure at Old Oak Common, arguing that failing to invest now risks missing a once-in-a-generation opportunity.
Before his re-election last May, Khan suggested that a Labour government would bring “real transformation in London”, with City Hall and Westminster “working together” rather than “rowing against the tide”. But the provisional local government finance settlement will see most inner London boroughs lose funding over the next three years, and the capital’s major transport schemes have not received the backing the Mayor had hoped for and the funds that have been given were conditional on a rise in tube fares.
Both sides insist the relationship remains functional, but the disagreements reflect deeper questions about how much the government is willing to invest in London’s infrastructure at a time of national fiscal pressure.
TfL has welcomed the government’s multi-year capital funding agreement and the approval of the DLR extension to Thamesmead, though it is expected to fund much of the project itself. A TfL spokesperson said the settlement would allow the organisation to continue supporting new homes and jobs while progressing long-term investment, including completing the introduction of new Piccadilly line trains, DLR trains and upgrading signalling on 40% of the Tube network including the District line. However, this does not appear to include the problematic Richmond branch which still operates on non-digital signalling.
The new Piccadilly line stock is expected to start operating in the first half of 2026 but after that there is no major improvement to public transport in west London in the pipeline.
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