TfL funding: Long term multi-billion pound deal secured with government
The mayor of London, Sadiq Khan has described the deal as “far from ideal,” warning that Tube fare rises and some cuts to buses were still on the horizon.
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The new agreement includes £1.2bn of upfront funding which will guarantee passenger revenue till March 2024 and £3.6bn for maintenance and infrastructure projects.
The deal will fund the purchasing of new trains for the Piccadilly line and Docklands Light Railway and the completion of upgrades across the District, Metropolitan, Hammersmith and City and Circle lines.
The funding will also be used for the extension of the Northern Line, the repair of Hammersmith Bridge and to complete work on the Elizabeth line.
It will also dedicate £80m every year to expanding the capital’s walking and cycling infrastructure.
However mayor Khan has described the deal as “far from ideal,” warning that Tube fare rises and some cuts to buses were still on the horizon.
“The government is still leaving TfL with a significant funding gap, meaning we will likely have to increase fares in the future and still proceed with some cuts to bus services,” he said.
“There are also onerous strings attached, such as the government’s condition requiring TfL to come up with options for reform of TfL’s pension scheme at pace, which could well lead to more industrial action and more disruption for commuters.”
Transport Secretary, Grant Shapps said: “For over two years now we’ve time and again shown our unwavering commitment to London and the transport network it depends on, but we have to be fair to taxpayers across the entire country.
“This deal more than delivers for Londoners and even matches the mayor’s own pre-pandemic spending plans but for this to work, the mayor must follow through on his promises to get TfL back on a steady financial footing, stop relying on government bailouts and take responsibility for his actions.
TfL commissioner Andy Byford said: “The agreement with government means that across the funding period, TfL expects to receive further base funding of around £1.2bn from government until March 2024 and gives TfL ongoing revenue support should passenger numbers not recover at the rate budgeted, which is crucial at this time of ongoing economic uncertainty.
“It helps us avoid large-scale cuts to services, and means that we will commit £3.6bn to capital investment over the period, with around £200m of new capital funding from Government beyond previously budgeted sources like business rates, which were devolved to the Mayor in 2017.
“We are grateful for the support of both the mayor and the government as we now set out to continue serving the capital and investing in safe and reliable services for the millions of people who need them.”