Transport for London (TfL) and the government have concluded on an emergency funding worth around £500mn to boost the capital's tube, train, tram and bus network until after May local elections. The capital's transport, which is primarily dependent on fare income, especially from the tube, has been hit severely because of the coronavirus.
Transport Secretary Grant Shapps said the settlement was extending the deal made last November on the same terms, until a long-term agreement could be made with a newly elected mayor. An initial payment of £260m will be topped up with a further grant based on actual revenues, a figure TfL estimates will be about £225m. He said it would mean more than £3bn had been given to TfL since March 2020 “under the condition that the network must take efficiency savings so it can reach financial sustainability as soon as possible.”
Dramatic losses suffered by the TfL has forced it to raise fares above inflation, with London mayor Sadiq Khan threatening to bring in further road charges in a political standoff that began since the start of the pandemic.
Khan said, “This seven-week extension will enable TfL to carry on running the safe, reliable and frequent services that will be vital as lockdown restrictions begin to ease. These discussions will continue as it is essential that TfL has further financial support and a long-term capital funding deal that will allow it to support a strong and robust recovery for London and the UK.”
