Government agrees to extend TfL funding until June
The UK Government has agreed to extending Transport for London’s (TfL) funds until 24 June, the public body announced today.
According to TfL’s commissioner Andy Byford, while the £200m extension is very welcome the government still needs to consent to a longer-term financial deal to help the body avoid a £1.5bn financial black hole.
“The mayor has already set out a range of proposals that will help support TfL’s financial sustainability in the future but it is essential that agreement is reached with Government on longer term capital support during this funding period,” he said. “This is crucial for the coming years if a period of the ‘managed decline’ of London’s transport network is to be avoided.”
The commissioner added that stakeholders will continue to work towards a more stable financial agreement, with the Department for Transport confirming it will continue to support the operation and maintenance of transport services in the capital.
Commenting on the news, London mayor Sadiq Khan said it’s fundamental that future capital investments materialise into concrete commitments.
“TfL has a critical role to play in driving the recovery and it supports tens of thousands of jobs across the UK, but the Government’s short-term deals are trapping TfL on life support and putting economic growth and jobs at risk,” Khan said.
“Over the next few months, I urge the Government to engage with TfL and City Hall in good faith so that we can finally agree a fair, longer-term funding deal that will protect London’s transport network – for the sake of the capital and the whole country.”
The decision comes after months of back and forth between TfL and the government, which resulted in talks being continuously postponed because no agreements were reached, City PM reported.
Several stakeholders, including business membership group London First and think tank Centre for London, welcome the news but reiterated the need for a more stable plan.
“Today’s announcement doesn’t negate the need for a long-term sustainable financial deal for TfL that allows proper forward planning and continued investment in the network,” said Centre for London’s chief executive Nick Bowes.
“A serious of stop-gap funding deals is just kicking the can down the line – a state of permanent crisis within the TfL is no way to run the modern public transport network London deserves.”
Not everyone was on board with the decision. The TaxPayers’ Alliance said that ministers are right to demand savings from TfL.
“Even before Covid, TfL’s finances were already off the rails,” said the group’s media campaign manager Danielle Boxall. “London’s transport bosses must start delivering better value for money so they never again throw taxpayers under the bus.”