The settlement will provide financial support until 11 December
2021, ensuring crucial reforms are accelerated to ensure TfL
becomes financially sustainable in the long term.
The latest agreement delivers value for money for taxpayers
across the country, and recognises the importance of the
capital’s economy. This deal follows the two previous emergency
support packages agreed in April and October 2020, and takes
total Government’s support to TfL since March 2020 to over
£4bn.
The deal builds on commitments from the previous support
packages and sets out further measures to be taken to ensure
TfL is financially sustainable by April 2023. These include
progressing efficiency and cost saving initiatives and
identifying new or increased sources of revenue for TfL beyond
2023.
Transport Secretary
said:
“This £1.08bn financial package will support London and its
transport network through the pandemic, and ensure it is a
modern, efficient and viable network for the future.
“Throughout this process the Government has maintained that
these support packages must be fair to taxpayers across the
UK and on the condition that action is taken to put TfL on
the path to long-term financial sustainability. As part of
today’s settlement, the Mayor has agreed to further measures
that will help ensure that.”
Within the funding period to 11 December, the Mayor of London
has agreed to:
- deliver £300m of savings or new income sources in
2021/2022;
- identify new or increased sources of revenue for TfL of
between £0.5 - £1bn each year from 2023;
- Prepare a plan to accelerate TfL’s existing modernisation
programme of £730m by April 2023;
- review TfL’s generous pensions scheme;
- prepare a revised medium-term capital investment programme;
- set aside at least £100m to continue the delivery of
healthy streets and active travel programmes;
- carry out a joint review with Government of demand on
London’s transport network to ensure service levels are
appropriate.
The Mayor has agreed to work collaboratively with DfT on a
joint programme for implementing higher levels of automatic
train operation on the London Underground, as is the case on
many metro systems worldwide. Over the course of this funding
period, the Mayor and TfL will make progress towards the
conversion of at least one London Underground line to full
automation but with an on-board attendant. This technology has
the potential to offer a more punctual, reliable,
customer-responsive and safer service that is less susceptible
to human error. TfL will also lead market engagement into
technology for protecting passengers at station platforms.
The London Underground is the world’s oldest underground
railway and the Government is committed to supporting the
capital’s transport network, ensuring that it meets the needs
of Londoners as we recover from the pandemic and that it is
modernised for the 21st century.
TfL and the London Boroughs are responsible for local road
maintenance, including bridge repairs. London Borough of
Hammersmith and Fulham is responsible for the safety and
maintenance of Hammersmith Bridge. However, given the
extraordinary circumstances of the pandemic, during the period
of this agreement, we expect to draw up a memorandum of
understanding between HMG, TfL and the London Borough of
Hammersmith & Fulham to fund the reopening of Hammersmith
Bridge – initially to pedestrians, cyclists and river traffic
and, depending on cost, to motorists. Funding will be
conditional on the following:
- All parties must scrutinise and agree the cost of the
project.
- Each party agrees to pay a share of the cost. Repair costs
are to be led by the London Borough of Hammersmith & Fulham
and TfL; HMG will not directly contribute more than 1/3 of the
costs
- That the independent Board responsible for the Case for
Continued Safe Operation, reporting to London Borough of
Hammersmith and Fulham, will conduct a new assessment for
controlled and limited reopening of Hammersmith Bridge to
pedestrians, cyclists and river traffic once further
investigations and report validations are completed at the end
of June. LBHF shares the assessment with the Government and
TfL.
