Spending Review Could Release Funds for Signalling Upgrades

Multi-year funding allows TfL to plan more capital investment

Communications-Based Train Control is already in place on most of the District Line. Picture: Facebook

June 11, 2025

The government Spending Review announced this Wednesday (11 June) sets out funding of £2.2billion which Transport for London (TfL) is to receive over the next four years.

The management of London’s transport network has been asking repeatedly for a multi-year deal to replace the short-term financing it has been receiving since the pandemic. TfL covers its own costs and the majority of its investment programme but relies on capital funding from the government to complete modernisation projects. This new deal allows it to complete a number of investments already being made including the introduction of new trains on the Piccadilly line and the Four Line Modernisation programme which will see signalling upgraded on the Circle, Hammersmith & City, District and Metropolitan lines.

For all of the Circle line and most of the District Line, Communications-Based Train Control (CBTC) to allow for Automatic Train Operation (ATO) via Thales's SelTrac system has already been introduced. However there remains some legacy signalling on Signal Migration Areas (SMAs) on the western section of the line. SMA 10 which runs from Barons Court to Stamford Brook was already planned for upgrade later this year as was Fulham Broadway to East Putney on the Wimbledon branch (SMA 12). SMA 9, which includes the Ealing Broadway branch of the District Line is already fully upgraded.

However, work on the signals between Stamford Brook and the Richmond Branch line (SMA 11) had been deferred with no date given as to when this work might be carried out. This section of the line is plagued with signal failures, but it is understood that due to funding pressures and the relative complexity of this section of the line which intersects with National Rail services and the Piccadilly line, meant that TfL focused on less complex upgrades. Following the Spending Review, TfL said it was still working through the details of the new agreement and was unable to confirm whether work on this section would now be timetabled.

There appears to be no money being made available specifically for the signalling upgrade on the Piccadilly line, but details of the spending review suggest some cause for optimism that the funds may be provided. The previous government gave funding of £250 million to support the purchase of trains for the Piccadilly line which was the first phase of the upgrade. An additional £485 million for 2025–26 was confirmed in the Autumn Budget last October, earmarked broadly for TfL’s capital programme but not for the Piccadilly line signals. New signals would dramatically increase the regularity of the service and allow a full service to be introduced at Turnham Green station.

TfL formally included the Piccadilly Line signalling upgrade in its Phase 2 funding bid for this Spending Review, alongside the Bakerloo upgrade and other growth projects, but failed to get a direct commitment for the project. However, TfL and the Department for Transport are still in negotiation for a multi‑year deal that would allow full rollout. TfL told us that it was unable, at this stage, to give any updated timetable for Piccadilly line signalling.

Andy Lord, London’s Transport Commissioner, said, “We are grateful that the Government has agreed a much-needed multi-year capital funding agreement similar to those in place with Network Rail and National Highways.

"This settlement will ensure that London’s transport network can continue to support new homes, jobs and economic growth in the capital. And it will boost jobs, skills, growth and opportunities across the UK. It will allow us to deliver a programme of sustainable investment, aligning our suppliers around a longer-term programme. And it will mean that we can complete the introduction of new trains on the Piccadilly line and DLR and new signalling on 40 per cent of the Tube, can procure a new tram fleet, progress discussions on new Bakerloo line trains and can get to work on renewing some of London’s critical roads, tunnels and flyovers.

London Travel Watch said, “The four-year funding settlement for Transport for London in the Chancellor’s Spending review today is a welcome step forward in giving greater stability to TfL’s finances and allowing current projects, such as the introduction of new trains on the Piccadilly line and DLR, to be completed.

“But the lack of extra funding for key projects such as the DLR and Bakerloo line extensions and the West London Orbital rail link is disappointing – and it is unclear whether the £2.2billion allocated will be enough to enable TfL to make good past under-investment in maintaining and renewing the existing network.”