TfL: £250m for Tube improvements - but Sadiq Khan calls for long-term deal

An additional £250 million in government funding has been announced for Transport for London (TfL) improvement projects - but the mayor says a long-term settlement remains "vitally important".

The Department for Transport (DfT) says the 2024 cash takes investment in TfL to more than £6.6bn since 2020, when Covid-19 lockdowns emptied out the London authority's revenue streams.

The £250m will contribute to projects including replacement trains for the Piccadilly line. The DfT says that scheme will support an estimated 700 skilled rail manufacturing jobs in Yorkshire and up to 2,000 more jobs in supply chains across the country. 

The funding will not be used to pay for day-to-day costs.

Sadiq Khan

Mayor of London Sadiq Khan, who oversees TfL, said: "I’m relieved that we have agreed this one-year capital funding deal with DfT, which will enable us to make vital upgrades to our transport network, including upgrades to the Piccadilly line. This one-year funding will also mean we are protecting and creating jobs around the country, including in Goole where many of these state-of-the-art trains are being made.

"However, it’s still vitally important that we agree a decent long-term funding settlement from the government that allows us to plan and invest for the infrastructure London will need over the coming decades. Expanding our transport network and supporting jobs and economic growth in London has real and sizeable benefits for the economy of the whole UK."

Huw Merriman

Rail minister Huw Merriman said the agreement "will have a tangible, positive impact not just for people travelling in and around the capital but also the millions who visit every year".

He said: "It is fair for Londoners and taxpayers, underpinning projects that will support hundreds of skilled manufacturing jobs in our vital rail sector.

"We have invested billions into the capital’s transport system in recent years. This investment must be well managed in a way that doesn’t unfairly burden the pockets of taxpayers and motorists."

Transport for London

Andy Lord, London's transport commissioner, said: "Through a huge effort to reduce costs and rebuild our ridership and revenue following the pandemic, TfL is now on track to be financially sustainable in terms of its day-to-day operations. We are also able to cover the cost of the majority of our capital investment.

"We, alongside London’s business stakeholders and others, have consistently made the case that additional government support for capital investment in transport is needed if we are to be able to continue to deliver vital improvements to London’s transport network, unlock new homes and support growth across London and the UK. It is good news that we have now reached an agreement with the government on the capital support that they will provide over the next year, and we are grateful for the support. However, we will now need to reassess our recent draft business plan and address the impact of the continuing shortfall in funding. That work is under way so that we can confirm as soon as possible what we will deliver for London."

As part of the deal, TfL will set out in July its plan to maintain and strengthen its finances going forward, while continuing work to reform its pension scheme and seeking efficiencies in its investment programme.

Liberal Democrats

Liberal Democrat London assembly member and transport spokesperson Caroline Pidgeon said: "The UK Conservative government has once again failed to adequately invest in the future of London's public transport. By constantly forcing TfL to operate on a short-term basis the Conservatives are ensuring that projects will end up costing more overall and that those that require long-term funding commitments have their futures placed in doubt. The UK government cannot continue to short-change London and expect it to continue to drive growth across the UK."

London Conservatives

City Hall Conservatives transport spokesperson Keith Prince said: “I’m delighted the Government has agreed to invest £250m in London’s public transport network next year. This is great news for Londoners and will pay for new Tube trains on the Piccadilly line as well as other capital works.

“As chair of Transport for London, Sadiq Khan has turned TfL into a financial basket case with over £15 billion in debt. The government has provided TfL with more than £6 billion of taxpayers money in recent years to ensure London's public transport system keeps moving. Like Transport Secretary Mark Harper, I have major concerns about how TfL has been run under Sadiq Khan. His poor financial management has seen TfL lurch from one financial crisis to another. Sadiq Khan can't be trusted to manage TfL finances properly including multi-year funding agreements. I believe this funding reflects that. Londoners deserve much better. Susan Hall has promised to launch a review of how TfL is run when she becomes Mayor in May. TfL desperately needs new leadership.”