Transport for London’s (TfL) funding agreement with the government to keep public transport services in the capital running has expired.
It was extended repeatedly, and the latest deadline expired at midday today.
TfL has confirmed that the current funding extension in relation to its extraordinary funding and financing agreement has now ended, but that it remains in a position to meet its operational and contractual obligations in the near term.
The medium to long term future of transport in London is however still at risk.
Without the ongoing funding to keep the capital’s services running as they recover from the pandemic, there would in theory come a point when TfL has to stop providing some of its services. Some are protected by statutory obligations, but everything else would be up for cuts to ensure TfL is able to balance its books.
TfL says that discussions with the Department for Transport (DfT) in relation to their future funding requirements are still ongoing and that it will provide an update in due course.
DfT has provided TfL with a draft proposal for a Long Term Funding Settlement but received it later than desired and is studying the terms of the offer being put to them.
Andy Byford, London’s Transport Commissioner said: “Since keeping London moving through the darkest periods of the pandemic we have been making the case to Government that there can be no UK recovery without a London recovery and that there can be no London recovery without a properly funded transport network.
“We are grateful for the support we have received so far, and maintain we have met every condition that has been set by Government as we have worked towards agreeing a multi-year funding settlement that would give certainty to London and to the tens of thousands of jobs across the country that are directly linked to TfL.
“Every other major transport system around the world receives central Government funding, and London needs the same if it is to have a transport network that can continue to support homes, jobs, opportunities and economic growth. The importance of a properly funded transport network, which can offer a viable alternative to car use and can play its part in addressing the climate emergency, has again been highlighted in recent weeks.
“We have previously set out to Government that we would need £927m for the remainder of this year, as well as a long-term capital funding deal to support London’s economic recovery. We are in active discussion with the Government to ensure that the draft funding proposal that they have made is fair and deliverable and can prevent the managed decline of the capital’s transport network. We hope these discussions can be concluded successfully soon.”
Updated: 3rd Aug 12:33 – statement from Andy Byford, Commissioner.