Secretary of State for Transport (): Following my statement to
the House on 25 February 2022, I am updating the House on a short
extension of the current Transport for London (TfL) funding settlement that was
due to expire on 24 June 2022 by 19 days to 13 July. This has
been agreed by the Mayor of London.
Since the start of the pandemic, we have supported the transport
network in London with nearly £5 billion funding through extraordinary funding
settlements for Transport for London. We have recognised the
reliance of London’s transport network on fare revenue, and
government continues our commitment to mitigating loss of fare
revenue because of the pandemic.
This extension to the current funding settlement is necessary in
part due to the unsatisfactory progress made by TfL on its conditions, including
pensions. Resolving these issues is an integral part of setting
TfL on the path to
financial sustainability, and government stands ready to engage
constructively to reach a resolution. This extension ensures that
they receive due attention, as well as allowing time for both
sides to consider a longer-term capital settlement.
Government is committed to supporting London’s transport network
as we have since the start of the pandemic, and is in discussions
with TfL on a
longer-term settlement. By rolling over the provisions of the
existing agreement, the extension provides continued support to
TfL and certainty to
Londoners while we work with TfL on its emergency funding needs.
Support to TfL has
always been on the condition that TfL reaches financial
sustainability as soon as possible and with a target date of
April 2023 and government continues to press the Mayor of London
and TfL to take the
decisions needed to put the organisation on a sustainable
footing. I will update the House at my earliest opportunity on
the details of any longer-term capital settlement.
