The consultants believe the investment will unlock 360 acres for development, which could include 6,700 affordable housing units; 5,000 private housing units and a massive 11.8 million sf of new office floorspace. And significantly much of this development will be concentrated in areas like Lambeth and Southwark where unemployment is almost double the London average.

Councillor Tom Franklin, Leader of Lambeth Council, said: 'The London Tram has already received overwhelming support from the public through the Mayor's own consultation. Now, this report clearly sets out the economic benefits that the London Tram will bring. We believe the London Tram represents the best deal for commuters, local residents, businesses and employees alike, and we urge Mayor Livingstone to accept our proposal as the best solution for London.'

And Chris Balch, DTZ Pieda Consulting's Director, Development and Regeneration, added: 'In particular, we believe that the proposals will reinforce the extension of London's central business district south of the River and will enable the residents of deprived communities to benefit from the employment opportunities created.'