Mayoral statement on TfL funding deal extension

Monday, 21 February 2022 10:28

The Mayor of London, Sadiq Khan, said: “This extension to the current funding deal until Friday 25th February will allow negotiations to continue. “The pandemic is the only reason TfL is facing a financial crisis. I urge the Government to engage with TfL and City Hall in good faith so that we can finally agree a fair, long-term funding deal that will protect London’s transport network – for the sake of the capital and the whole country. “London’s...Request free trial

The Mayor of London, Sadiq Khan, said: “This extension to the current funding deal until Friday 25^th February will allow negotiations to continue.

“The pandemic is the only reason TfL is facing a financial crisis. I urge the Government to engage with TfL and City Hall in good faith so that we can finally agree a fair, long-term funding deal that will protect London’s transport network – for the sake of the capital and the whole country.

“London’s economy plays a huge role in the national economy and around 43,000 jobs outside London depend on TfL’s investment. If the Government fails to support TfL at this difficult time, it could impact TfL’s UK-wide supply chain, hitting jobs and growth and holding back the economic recovery in London and across the UK.”

Written statement from Transport Secretary Grant Shapps

I am updating the House on an interim extension of the current Transport for London funding settlement that was due to expire on 18 February 2022 by one week to 25 February 2022. This was requested by TfL and has been accepted by government.

Since the start of the pandemic, we have supported TfL with over £4.5bn funding through extraordinary funding settlements for Transport for London. We have recognised the reliance of London’s transport network on fare revenue. We have recognised that demand and therefore passenger revenue has been volatile and have responded accordingly, compensating TfL for that revenue loss to ensure services can be maintained.

Government is still committed to supporting London’s transport network as we have since the start of the pandemic and it has offered TfL and the Mayor of London a fourth extraordinary funding agreement. TfL have asked for an extension of one week to allow the Mayor of London to consider the terms of the settlement letter and agree it with Government.

The Government is committed to supporting London and the transport network on which it depends, balancing that with supporting the national transport network. I will update the House on the details of the next financial settlement after the close of this extension period.