New TfL funding avoids “bankruptcy” and “managed decline” scenarios

The Government has agreed a £1.2bn upfront funding boast with Transport for London (TfL) to ensure the network is protected against lost revenue caused by uncertainty of post-pandemic demand, alongside some modernisation and network upgrades. This will include new Piccadilly line trains, as well as upgrades across the District, Metropolitan, Hammersmith and City, and Circle lines.

Despite the cash injection, TfL says the money still leaves “a significant funding gap” which could lead to the closure of some bus services and increases to fare prices.

The Mayor of London, Sadiq Khan, said, “This funding agreement comes after more than a month of tough negotiations because I’ve been determined to stand up for London and to fight for our transport network, which so many Londoners and businesses rely upon.     

“The good news is that we have managed to win a number of key concessions from the Government, which mean we will be able to avoid TfL having to make the devasting cuts to vital transport services previously proposed – moving us away from the managed decline of London’s transport network. 

“However, I want to be frank with Londoners – this deal is far from ideal. 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. 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.

“These are things we have had no choice but to accept in order to get the deal over the line to avoid TfL becoming bankrupt, to save the jobs of thousands of transport workers and to keep trains, tubes and buses running across our city.  

 “The sole cause of TfL’s financial crisis was the impact of the pandemic so it’s simply wrong to punish Londoners and transport workers in this way. Levelling up the country should not be about levelling down London.  

“We will now be working flat out to mitigate the impact of the conditions required by the Government so that we can maintain a world-class transport network in our city, which is so crucial as we strive to continue building a greener, fairer and more prosperous London for everyone.”