The London Assembly has today
called on the Mayor to be clear in his proposed 2025-26 Budget as
to whether there will be an increase in Transport for London
(TfL) fares next year.
In the Mayor's 2024-25 budget, TfL fares were frozen, with the
Mayor's 2024 election manifesto stating that the fares freeze
would continue "as long as economic conditions allow."[1]
As part of the government's Autumn Budget, a new funding
settlement was announced with TfL. This settlement included £485
million of capital funding for 2025-26.
The settlement letter stated that the Government's approach for
the next phase of the Spending Review is that “HMG's [His
Majesty's Government] assessment of TfL funding needs in Phase 2
of the Spending Review will be conducted against a baseline
scenario where TfL rail fares rise in line with national rail
fares this year.”[2]
Following an October Budget and Performance
Committee meeting with a panel of external financial,
housing and policing experts, the Committee has written to the
Mayor with a number of recommendations ahead of the 2025-26
budget submissions.
Recommendations include:
- In light of the Government announcement the Committee urges
you to be clear on your response to the fare rise expected by the
Government in your 2025-26 Budget proposals.
- The Committee is concerned about the lack of investment in
the maintenance of TfL's existing network, and we urge TfL to
prioritise its spending on capital renewals in order to address
the backlog in asset maintenance.
- The Committee requests detailed information regarding the
number of housing units budgeted to be delivered, along with a
breakdown of their size and tenure type is included in the
2025-26 Budget.
- The Metropolitan Police should explore further options for
improving retention rates, such as improved working practices and
line management training.
Chairman of the London Assembly Budget and Performance
Committee, AM, said:
“The Mayor has a substantial budget of over £21 billion, so
it is essential that he is open and transparent with Londoners on
how that money is being spent.
“We heard from a panel of experts that TfL should be
prioritising its renewals programme, to keep services running
smoothly and effectively now and in the
future.
“However, with an underinvestment in this area in recent
years, and with a £150 million shortfall in passenger income, the
Mayor has some tough decisions to make
“Londoners need to know whether to expect a fares increase,
which has been hinted at in the government's recent TfL funding
settlement.
“Financial uncertainty remains, and it is important the Mayor
takes on board our recommendations ahead of his upcoming
budget.”
Notes for editors:
- Read the embargoed letter in full
attached.
