Transport of London (TfL) is responsible for managing transport services across the capital and this includes buses, Underground, Docklands Light Railway, London Overground and London Trams. It also runs London River Services, Victoria Coach Station and the congestion charge scheme. TfL is also responsible for a network of main roads; London's traffic lights and it regulates taxis and the private hire trade. Other than keeping London moving, it is no exaggeration to say TfL plays a major role as the engine of London and the UK’s economy.
Fares income generates almost three quarters of the funding needed to run all of these services. The Covid-19 outbreak has resulted in an unprecedented loss in TfL’s income, leading to a 90% drop in fares revenue during the first lockdown, requiring the Government to step in and offer its support. Unfortunately, the Government has used the funding negotiations to punish Londoners for doing the right thing by staying at home during Covid and has demanded unacceptable conditions in return of funding.
This month, we successfully fought off the worst conditions that the Government’s tried to peg onto its emergency funding settlement with TfL.
Before the pandemic, due to the efforts of the Mayor and TfL’s financial position was getting stronger year by year. It’s operating deficit had been reduced by 71% and its cash balances had been boosted by 13%.
This all changed with the pandemic and the first lockdown, where TfL’s fares revenue plummeted by 90%. For obvious reasons, tube and bus ridership have struggled to recover since.
This is particularly problematic for TfL, which is mostly reliant upon fares for its income after the Government irresponsibly took away its £700m a year grant in 2018.
As a result, TfL have needed Ministers to step in and provide emergency grants to stop transport services from grinding to a halt.
However, it has been frustrating to see the Government use this crisis as an opportunity to propose punitive conditions as part of the funding negotiations. This includes the extension of the congestion charge to the North and South circulars and the removal of free travel for under 18s and older people in the capital.
However, our campaigning supported by charities, business leaders and ordinary Londoners forced the Government to take these damaging proposals off the table.
The latest funding deal will run out in March 2021 meaning the fight is not over. These conditions are likely to come up during negotiations again, unless we continue to place further pressure on Ministers over the coming months.
At a time when Londoners and businesses are already suffering due to the pandemic, expanding the congestion charge and taking away travel concessions would be nonsensical.
The Government now needs to provide TfL and Londoners with a long-term and sustainable funding deal, that will not punish ordinary people and protect jobs and key infrastructure projects.
I will continue working and campaigning with Age UK in order to try and protect free travel for older Londoners. Sadly, the Government has already stripped free travel from over 60s before 9am which has had a significantly negative impact. Alongside Age UK, I also commend the work of Child Poverty Action Group (CPAG) for robustly defending the right of children and young adults to free travel in London.
