The package, which will provide financial support until
March 2021, is focused on protecting services and
ensuring the capital’s transport network stands ready
to support the recovery from coronavirus (COVID-19).
Government funding will ensure those who need to, such
as NHS
staff, can continue to be able to travel as the nation
enters tougher national restrictions.
As with the national rail operators, buses and tram
systems, the government will make up all the fare
revenue which TfL has lost due to the
COVID-19 pandemic through this support package.
National taxpayers will also continue to fund free
travel concessions to standard English levels and free
travel to school for children who qualify under
national legislation. Nearly all the package will be
grants and £95 million will be loans.
The Mayor has also chosen to make £160 million in
savings over the next 6 months in TfL and raise fares by
RPI+1%.
The Mayor has further stated that, if he wishes to
maintain Londoners’ concessions above the English
level, he will raise the money to pay for them himself.
If he decides to do this, he will come forward with a
plan to raise revenue to fund this.
In the agreeing the bailout, the Mayor proposes that he
could, pay for these concessions by retaining the
central London congestion charge at its current level
and by increasing the existing TfL element of the
GLA’s
council tax precept. He must make his final choice by
January 2021, at the same time as he presents a plan
for the long-term financial sustainability of
TfL.
Expanding the congestion charging zone to inner London
has been ruled out by both the government and the
Mayor. The Freedom Pass for pensioners will continue as
now, as it is not funded by TfL or the Mayor.
The 2 government special representatives will continue
to sit on TfL’s board. A new
government-chaired government oversight group will
monitor the implementation of the agreement and the
sustainability plan.
The Transport Secretary, ,
said:
This deal is proof of our commitment to supporting
London and the transport network on which it depends.
Just as we’ve done for the national rail operators,
we’ll make up the fare income which TfL is losing due to
COVID-19. Londoners making essential trips will
continue to be able to use tubes, buses, and other
TfL
services, thanks to this government funding.
At the same time, the agreement is fair to taxpayers
across the country. The Mayor has pledged that
national taxpayers will not pay for benefits for
Londoners that they do not get themselves elsewhere
in the country.
Over the coming months, as we look to move beyond the
pandemic, I look forward to working with London’s
representatives to achieve a long-term settlement,
with London given more control over key taxes so it
can pay more costs of the transport network itself.
This agreement marks the first step towards that,
potentially allowing a longer-term, sustainable
settlement for TfL when the course of
the pandemic becomes clearer.
