The Government has agreed a £1.6 billion funding and financing
package for Transport for London to protect key services,
helping people to stay safe during the pandemic and supporting
the capital's gradual recovery from Covid-19.
TfL operates services for around a billion passengers a year,
serving a city of 10 million. More bus journeys were completed
in London last year than across the rest of England put
together, but the coronavirus pandemic has had an unprecedented
impact on the tube and bus network.
In order to safeguard services on the network, the Government
has agreed a package consisting of a mixture of grants and
loans based upon a series of conditions agreed by the Mayor,
. This agreement includes
increasing service levels as soon as possible to ensure people
can follow social distancing guidelines while on the network,
making sure those who have no alternative to public transport
can travel safely.
A London Covid-19 Task Force, comprising representatives
of the government and TfL, has been established to oversee
operational decisions during the crisis. The collective focus
will be on taking all practicable steps to increase the number
of services as quickly as possible to benefit passengers who
have no alternative to public transport.
In order to safeguard services in the future, the package will
see the reintroduction of fares on buses and reinstatement of
the congestion charge. It will also focus on promoting traffic
management and active travel to maximise the benefits of the
government’s record £2bn investment in cycling and walking.
This will include efforts to push forward new segregated cycles
lines, pavement extension and road closures to traffic, making
it easier for people to chooser greener ways to travel.
Transport Secretary, , said:
“People should avoid using public transport and work from
home wherever possible, but as measures are slowly lifted it
is vital that Londoners who need to use TfL services feel
safe and secure.
“We must drive an increase in services to support social
distancing and ensure our capital keeps moving, driving the
economic recovery of this country going forward.
“This deal will encourage a real move towards greener and
healthier walking and cycling options, ease pressure on our
public transport and provide certainty and stability for
London’s transport services in the future.”
In order to reduce the risk of crowding and to encourage
vulnerable groups to from using public transport at the busiest
times when there is greater risk of transmission and it may not
be possible to socially distance, the deal will see the
temporary suspension of the Freedom Pass and 60 plus card
concessions to off peak hours. It will also see temporary
suspension of free travel for under 18s and special
arrangements will be made to ensure children eligible under
national legislation can still travel to school for free. These
changes will take place soon as practicable.
To put TfL on a sustainable footing for the longer term and
help safeguard its future, the Mayor has agreed that the
Government will carry out an immediate and broad-ranging review
of the organisation's future financial position and structure,
including the potential for efficiencies. Two special
representatives will represent the Government on TfL's board,
its finance committee and its programmes and investment
committee, in order to ensure best value for money for the
taxpayer.
The Mayor has also agreed to increase fares next year on all
modes by RPI plus 1 per cent, in line with the proposals in
TfL's own business plan, in order to put the organisation on a
more sustainable footing.
The deal, a grant of £1.095bn and a loan of £505m, runs until
October.
The full terms of the agreement will be published in Parliament
at the first opportunity.
