- Fourth emergency funding settlement takes Government support
close to £5bn
- The settlement includes conditions to put TfL on track to
financial sustainability by 2023
- Includes the potential for a longer-term capital settlement
dependent on the Mayor and TfL’s cooperation with the Government
The Government has today (25th February) agreed a fourth
extraordinary funding settlement for Transport for London (TfL)
worth £200m, allowing the capital’s transport network to continue
to operate while representing value for money for all
taxpayers.
The settlement will run until 24 June 2022, reaffirming the
Government’s commitment to the network as it recovers from the
pandemic and continues to work towards long-term financial
sustainability.
Recognising the need for stability and forward planning, the new
deal also includes the potential for a longer-term capital
investment settlement for TfL. This would be agreed ahead of the
next financial year and will be dependent on the Mayor and TfL’s
cooperation with the Government, including providing sufficient
information regarding its capital investment plans and meeting
conditions set out in the previous settlement.
This follows three previous emergency funding packages and takes
the Government’s support for TfL, since March 2020, close to £5
billion. This is on top of an additional pledge to provide over a
billion pounds of capital investment every year in October’s
Spending Review.
Transport Secretary, said:
“Over the past two years, the Government has repeatedly shown its
commitment to London and the transport network it depends upon,
by providing close to £5bn in emergency funding.
“These support packages must be fair to all taxpayers and the
settlement agreed today provides enough to cover lost revenue
from the pandemic while the Mayor follows through on his promises
to keep TfL on the path to financial sustainability by
2023.”
In this funding settlement, the Mayor will consult on the options
he believes will raise between £500m and £1bn of additional
yearly revenue from 2023. He will also be outlining options to
achieve operating cost savings of up to £400m in 2022/2023 and
delivering against TfL’s accelerated modernisation plan, whilst
making significant progress in moving the Pension Fund into a
financially sustainable position.
Throughout this period, Government will continue to work closely
with the Mayor and TfL to ensure London’s transport system
delivers for Londoners and contributes to the entire country’s
economic recover while maintaining the interests of national
taxpayers.
