Grant Shapps has announced an ‘interim extension’ of the current Transport for London (TfL) funding settlement after TfL went three weeks past its deadline in providing details of how it would raise up to £1bn.
In a statement to MPs, the transport secretary said the existing funding package, which was due to expire on Saturday (11 December) 2021 had been extended by one week, in agreement with London mayor Sadiq Khan, ‘rolling over the provisions of the existing settlement’.
(not exactly) Piccadilly Circus, September 2021
Mr Shapps said the Department for Transport (DfT) had received a letter on Thursday from Mr Khan that provided further information on how he and TfL will raise new income of between £0.5bn and £1bn in line with the commitment agreed under the June 2021 emergency settlement.
He said: ‘This response was already 3 weeks past the original deadline of 12 November 2021. Government requires further clarification on these proposals and the Mayor of London has been asked to provide more detailed information by 15 December 2021.’
‘Mr Shapps added: Support to TfL has always been on the condition that TfL reaches financial sustainability as soon as possible and with a target date of April 2023. The condition on identifying new or increased income sources is integral to TfL achieving that objective.’
TfL stressed again that its forecast revenue loss is ‘due to reduced passenger numbers using TfL services as a result of the pandemic’
A spokesperson said: ‘We continue to discuss our funding requirements with the Government, who have today indicated their intention to extend our funding support for TfL through until17 December 2021.
‘There is no UK recovery from the pandemic without a London recovery and there is no London recovery without a properly funded transport network in the capital.’
On Tuesday City Hall said analysis showed that losses to London transport users and the wider economy could exceed £12bn over the next ten years if TfL is forced to move to a ‘managed decline’ scenario.
Nick Bowes, chief executive of Centre for London, said: 'A return to deteriorating infrastructure and worsening services risks making it more difficult for Londoners to go about their lives, get to their jobs and visit friends and family. It could also result in lost jobs across the country as the companies making trains, signalling, track and other critical equipment lose out too – hardly the aim of the Government’s levelling up agenda.
'It’s critical that the government and the Mayor come to an agreement as soon as possible.'
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