Transport for London warned Monday of a funding shortage after only receiving half the grant they had requested from the central government in order to keep the capital’s transport network operating next year.
The £250mn bailout is the latest in the series of bailouts provided by the UK Government to help TfL recover after the financial impact of Covid.
The transportation system that operates London’s buses, surface trains, and the Underground metro is having a hard time recovering because traffic levels are still lower than before the pandemic, even though people are now working in a hybrid way.
TfL stated that it was on track to cover its day-today costs by the end the financial year, March 2024. However, they were seeking £500mn in the next 12 months to fund the modernisation and expansion of some parts of the oldest metro system in the world.
Andy Lord, London’s Transport Commissioner, welcomed the agreement reached with the Government, but warned TfL that it needed to “reassess” its business plan in order to “address” the impact of a continued funding shortfall.
He said that he was working to “confirm what we will deliver in London as soon as possible”.
Sadiq Khan is the Labour Mayor of London, who oversees Transport for London. He said that he was “relieved that a deal had been reached for next year.” However, he cautioned that it was still “vital” that “we agree on a decent funding settlement for the long-term from the government, that allows us plan and invest in the infrastructure London needs over the coming decade.”
Huw Merriman, rail minister of London, said that the funding agreement balances the interests of Londoners as well as taxpayers.
“We’ve invested billions in the capital city’s transportation system over the past few years.” “This investment must be managed well so that it doesn’t unfairly burden taxpayers and drivers,” he said.
Since the pandemic began in early 2020, the central government has provided TfL with nearly £6.4bn.
The tensions between Khan’s government and the UK Conservative Party have grown in recent years, as the successive bailouts came with conditions and fell short of the amount TfL claimed was required.
The £250mn funding next year is enough to build new trains on the Piccadilly Line by Siemens, in Goole, East Yorkshire. It will also support 2,700 jobs across the country.
TfL wanted more money to upgrade other parts of London’s Underground. This included ordering new rolling stock, which would replace the old 50-year-old Bakerloo Line trains.
The Central Line, which is one of the busiest lines in the Underground system, has already seen a reduction in service reliability due to the ageing of trains and signalling equipment.