More efficiency measures, savings and new sources of income form part of the longer-term plans to make TfL financially sustainable after Covid-19
On 1 June the Government agreed a third funding and financing package for Transport for London (TfL) worth around £1.08 billion, which will ensure the continued running of London’s transport network as the Government’s roadmap through the Covid-19 pandemic continues. The settlement will provide financial support until 11 December this year. The Government said that the latest agreement delivers value for money for taxpayers across the country and recognises the importance of the capital’s economy. This deal follows the two previous emergency support packages agreed in April and October 2020, and takes total government support to TfL since March 2020 to over £4 billion. It builds on commitments from the previous support packages and sets out further measures to be taken to ensure TfL is financially sustainable by April 2023. These include progressing efficiency and cost-saving initiatives and identifying new or increased sources of revenue for TfL beyond 2023.
Transport Secretary Grant Shapps said: ”This £1.08 billion financial package will support London and its transport network through the pandemic, and ensure it is a modern, efficient and viable network for the future.
“Throughout this process, the Government has maintained that these support packages must be fair to taxpayers across the UK and on the condition that action is taken to put TfL on the path to long-term financial sustainability. As part of today’s settlement, the Mayor has agreed to further measures that will help ensure that.”
Within this round of funding, the Mayor of London has agreed to:
Deliver £300 million of savings or new income sources in 2021 to 2022;
Identify new or increased sources of revenue for TfL of between £0.5 billion to £1 billion each year from 2023;
Prepare a plan to accelerate TfL’s existing modernisation programme of £730 million by April 2023 and review TfL’s generous pensions scheme;
Prepare a revised medium-term capital investment programme;
Set aside at least £100 million to continue the delivery of healthy streets and active travel programmes; and
Carry out a joint review with Government of demand on London’s transport network to ensure service levels are appropriate.
Amongst other commitments, the Mayor has agreed to work with DfT on a joint programme for implementing higher levels of automatic train operation on the London Underground. Over the course of this funding period, the Mayor and TfL will make progress towards the conversion of at least one London Underground line to full automation but with an on-board attendant. TfL believes the technology has the potential to offer a more punctual, reliable, customer-responsive and safer service that is less susceptible to human error.