TfL and DfT agree long-term funding deal

The Government has struck a long-term funding deal with Transport for London (TfL) worth £1.2 billion up to March 2024.

The settlement, which follows months of negotiations, will support almost £3.6 billion worth of projects in the capital.

As part of the agreement, the Mayor of London, Sadiq Khan, has agreed to continue work on the introduction of driverless trains on London Underground.

Khan has also committed to submit proposals to reform pensions, in line with TfL’s plans to become financially sustainable, by the end of September and continue to progress ongoing initiatives to modernise, reform and become more efficient.

Furthermore, TfL must achieve the revenue generation proposals promised in February and progress proposals through public consultation, which includes the expansion of the ultra-low emission zone (ULEZ) to cover Greater London.

The Mayor and TfL will be responsible for setting out and implementing areas where these changes can be made as well as accelerating crucial reforms to ensure TfL becomes financially sustainable by 2023, says DfT.

Transport secretary, Grant Shapps said: “For over two years now we’ve time and again shown our unwavering commitment to London and the transport network it depends on, but we have to be fair to taxpayers across the entire country.

“This deal more than delivers for Londoners and even matches the Mayor’s own pre-pandemic spending plans but for this to work, the Mayor must follow through on his promises to get TfL back on a steady financial footing, stop relying on Government bailouts and take responsibility for his actions.

“Now is the time to put politics to one side and get on with the job – Londoners depend on it.”

This latest settlement follows on from four previous emergency deals, with more than £5bn of upfront funding and a pledge of more than £1bn of investment per year at the most recent spending review.

TfL commissioner Andy Byford said the funding helps it avoid “large-scale cuts” to services and means that it will commit £3.6bn to capital investment over the period, with around £200m of new capital funding from Government beyond previously budgeted sources like business rates, which were devolved to the Mayor in 2017.

“The agreement also allows us to increase our asset renewal programme to help ensure our network remains reliable, and means we can restore our Healthy Streets programme, making our roads safer, and more attractive for those walking and cycling,” added Byford.

“The support offered by Government left an unfunded gap in our budget, which we have been working hard to identify how we will fill.

“This work has made good progress and we are confident that we will achieve an outcome that allows us to balance our budget and maintain our minimum cash balance.

“We will need to progress with our plans to further modernise our organisation and make ourselves even more efficient, and we will still face a series of tough choices in the future, but London will move away from the managed decline of the transport network.”

The deal will enable the adoption of new Piccadilly line trains, as well as modernisations and upgrades across the District, Metropolitan, Hammersmith and City and Circle lines for millions of Londoners.

Specific upgrades will also include supporting the long-awaited repair of Hammersmith Bridge, the extension of the Northern Line and vital improvements to Elephant and Castle station.

In addition, the deal will dedicate £80 million every year to active travel schemes, expanding walking and cycling infrastructure which will reduce congestion and pollution across the capital.