Transport for London’s (TfL) funding deal with the government was due to run out tonight, but they’ve just announced another extension of the finding package until Friday 18th February 2022.

Another two weeks of negotiations.

A Transport for London (TfL) spokesperson said: “We continue to discuss our funding requirements with the Government. There is no UK recovery from the pandemic without a London recovery and there is no London recovery without a properly funded transport network in the capital. It is essential London receives the sustained long-term Government funding that is vital for the coming years if a period of ‘managed decline’ of London’s transport network is to be avoided.”

“We have today (4 February) agreed with the Government that our existing funding agreement will be extended until 18 February 2022 so that these discussions can be concluded. Working together, we must achieve a longer term capital funding settlement for at least three years, that ensures London’s transport network can remain reliable and efficient, can support the jobs and new homes that rely upon it and can support the economic recovery of the capital and the country as a whole. We hope these discussions can be concluded successfully soon.”

On 1st June 2021, TfL announced that an extraordinary funding and financing support package had been agreed between TfL and the DfT to support transport services in London and contribute towards TfL’s forecast revenue loss due to reduced passenger numbers using TfL services as a result of the pandemic. The Funding Package initially provided support for the period from 29th May 2021 to 11th December 2021 and was subsequently extended.

On 17th December 2021, TfL announced that the terms of the Funding Package had been amended to extend the funding period to 4th February 2022, to allow TfL to continue discussions with the government in relation to further financial support.

Following further discussion, the terms of the Funding Package have now been amended to define the funding period as 29th May 2021 to 18th February 2022. All the other provisions of the Funding Package remain materially the same.

The Mayor of London, Sadiq Khan, said: “This two-week extension to the current funding deal will allow negotiations to continue.

“The pandemic is the only reason TfL is facing a financial crisis. I urge the Government to engage with TfL and City Hall in good faith so that we can finally agree a fair, long-term funding deal that will protect London’s transport network – for the sake of the capital and the whole country.”

TfL outlined the threat to London’s transport services if it is unable to secure a long-term funding agreement earlier this week, and the RMT union has called a strike to protest against possible changes to staff terms and pensions.

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3 comments
  1. LMonroe says:

    I don’t know why the DfT keeps extending the settlement. They have all the power as long as Sadiq keeps having to beg.

    They can force Sadiq to give up all the TfL board seats to government appointed union busting Thatcherite types. They can ensure that TfL switches to defined contribution pensions at the statutory minimums. They can force Sadiq Khan to impose freezes in cash terms on pay for the remainder of his term in office; effectively a large pay cut given the high inflation levels.

    Now that tube strikes have ceased to be a material inconvenience to around 70% of regular tube users, unions can be safely ignored. It’s time to modernise London Transport and cut costs with gleeful abandon, without being held back by 1970s technology and union attitudes.

    • Christopher Benjamin says:

      You’re being naieve to say the least. Making TFL continually beg makes great political capital for a Government that wants to punish London for being a Labour stronghold, as well as gaining brownie points for London Bashing. TFL has been incredibly innovative over the years..Zoning, Oyster, Low Emission Buses, Accessible Stations etc. The idea that they are regressive and in thrall to the Unions is nonsense.

    • David Edwards says:

      So to save some money in the short term (financial sustainability is expected in a couple of years), their staff should have to suffer no pay increases (and you hope get pay cuts) at a time of record inflation? Some staff ( I don’t work for TfL) get paid well, but others are on much more ‘normal’ salaries and need to pay mortgages, heat their homes, feed their kids etc.

      The reason the pandemic has impacted TfL is that they get most of their funding through passenger fairs, so are not normally a drain tax payer funds through subsidies, in the same way as other global public transport systems can be, so they need simply short term support while passenger numbers are low, in the same way many firms (including train operators and airlines) did.

      I find it really depressing how people feel that everyone getting a decent salary and pension for a safe retirement is a bad thing that must be stopped.

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