Amongst a number of points covered in SoS Hammond's announcement this
morning was this one:

---quote---
Today, I can confirm we will fund and deliver the Thameslink programme in
its entirety, virtually doubling the number of north-south trains running
through central London at peak times. But the original programme for the
rebuilding of London Bridge was always ambitious, with substantial risks
around delivery, and operation of existing services, during construction.
To reduce these risks, we have re-profiled the delivery of the programme to
achieve completion in 2018. This will enable Network Rail to make further
efficiencies to their design and delivery programme.
---/quote---

Source:
http://www.dft.gov.uk/press/speeches...ammond20101125

So, it appears as though the whole shebang will go ahead as originally
envisaged, i.e. including Key Output 2 (of which the extensive Bermondsey
dive-unders on the approaches to London Bridge are a part, for instance).