passengers in and around the capital to benefit from
further £250 million government funding
investment in upgrades will
bolster manufacturing jobs and suppliers around the
country
latest package brings total government support
for TfL to
more than £6.6 billion since 2020
Ministers and Transport for London (TfL) have today (18 December 2023)
agreed a new £250 million funding injection for 2024 to improve
London’s transport system.
The government has been clear that this investment is for
TfL to continue
delivering its investment programme, including new trains for the
Piccadilly line, a scheme which will support an estimated 700
skilled rail manufacturing jobs in Yorkshire and up to 2,000
more jobs in supply chains across the country.
Rail Minister, , said:
We’re investing in transport across the country and today’s
agreement will have a tangible, positive impact not just for
people travelling in and around the capital but also the millions
who visit every year.
It is fair for Londoners and taxpayers, underpinning projects
that will support hundreds of skilled manufacturing jobs in our
vital rail sector.
We have invested billions into the capital’s transport
system in recent years. This investment must be well
managed in a way that doesn’t unfairly burden the
pockets of taxpayers and motorists.
Andy Lord, London’s Transport Commissioner, said:
Through a huge effort to reduce costs and rebuild our ridership
and revenue following the pandemic, TfL is now on track to be
financially sustainable in terms of its day-to-day operations. We
are also able to cover the cost of the majority of our capital
investment.
We, alongside London’s business stakeholders and others, have
consistently made the case that additional government support for
capital investment in transport is needed if we are to be able to
continue to deliver vital improvements to London’s transport
network, unlock new homes and support growth across London and
the UK.
It is good news that we have now reached an agreement with the
government on the capital support that they will provide over the
next year, and we are grateful for the support. However, we will
now need to reassess our recent draft business plan and address
the impact of the continuing shortfall in funding. That work is
underway so that we can confirm as soon as possible what we will
deliver for London.
With central government having already provided nearly £6.4
billion since 2020 to support transport in London, this latest
package supports much-needed capital investment. TfL is working to achieve
operational financial sustainability this year and its draft
business plan, considered by the board earlier this week, sets
out its plans to ensure this continues.
Under the last settlement, £1.2 billion of government funding
supported almost £3.6 billion of major transport projects in the
capital, including the completion of a number of major
projects, new road schemes and increased bus priority.
TfL now benefits from
around £2 billion every year in retained business rates
following a measure in the 2021 Spending Review, which saw
government continue over £1 billion of enhanced retention
for TfL’s capital
investment, on top of its fares and other income sources.
In providing this funding, the government sought to
help TfL modernise,
operate more efficiently and reach a more stable financial
footing. Today’s agreement recognises TfL has made progress in this
regard and that it is on track to reach financial
sustainability by the end of the financial year. As part of the
deal, TfL will set out in July
its plan to maintain and strengthen its finances going
forward while continuing work to reform its pension
scheme and seeking efficiencies in its investment
programme.
The government and TfL
agree that under this new agreement funding cannot be used to
support TfL’s
day-to-day operations.
While delivering transport services in the capital is ultimately
the Mayor’s responsibility, the Department for
Transport will continue to engage closely with TfL on its wider and
future capital plans.
Read the Secretary of
State for Transport’s letter to the Mayor of London.
