TfL secures £1.2 billion in funding but mayor warns ticket prices rise and bus service still likely to be cut | Business newsletter

Transport for London has been funded by around £1.2 billion by the government, but the city’s mayor has warned that the deal is “far from ideal”.

The funding package replaces TfL’s last bailout, the fourth since the start of the COVID-19 pandemic in early 2020.

Andy Byford, Transport Commissioner for London, said the deal, which runs until the end of March 2024, would benefit the whole country.

“There is no UK recovery without London’s recovery, and no London recovery without a properly funded transport network,” he said.

Mr Byford added that the funding would help avoid large-scale cuts to services and would mean the company would commit to a £3.6 billion capital investment over the period.

Among the projects that will benefit will be new Piccadilly tram lines, repair of the Hammersmith Bridge and extension of the North line.

Sadiq Khan, the mayor of London, said the deal brought “some important concessions from the government”, although he warned it was “far from ideal”.

He said there was still a £740m funding gap in TfL’s budget over the next 20 months, adding: “We will likely have to raise fares going forward and still make some cuts. bus service number.”

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‘The difficulty chain is attached’

“There are also troubling conditions that come with it, such as a government condition that requires TfL to offer options for reforming TfL’s pension scheme at speed, which could lead to an increase in speed,” said Mr Khan. to more industrial action and more disruption to commuters.

“These are the things we have no choice but to accept in order to reach this agreement to avoid TfL going out of business, save the jobs of thousands of transport workers and keep our trains, pipes and vehicles.” Buses run all over our city.”

He added: “The only cause of TfL’s financial crisis was the impact of the pandemic, so it is wrong to punish Londoners and transport workers in this way.

“Upgrading the country is not leveling London.”

‘Put politics aside and get to work’

Transport Secretary Grant Shapps said: “Over the past two years we have demonstrated time and again our unwavering commitment to London and the transport network it depends on, but we are. must be fair to taxpayers across the country.

“This deal is not only profitable for Londoners and even fits into the mayor’s pre-pandemic spending plan, but for this to work, the mayor must live up to his promise to bring TfL to life. get back to financial stability, stop relying on government bailouts, and take responsibility for your actions.

“Now is the time to put politics aside and get to work – Londoners depend on it.”