Transport for London (TfL) has secured an extension of its emergency funding package for a further 7 weeks.
The funding had been due to expire at the end of this month, and last week, Grant Shapps offered to extend it until 18th May while talks continued. That coincidentally also avoids a potentially awkward situation of announcing any long-term deal in the run-up to the Mayoral elections, which will take place on 6th May 2021.
TfL has now confirmed that it has accepted the offer.
The Mayor of London, Sadiq Khan, said: “This seven-week extension will enable TfL to carry on running the safe, reliable and frequent services that will be vital as lockdown restrictions begin to ease.”
“These discussions will continue as it is essential that TfL has further financial support and a long-term capital funding deal that will allow it to support a strong and robust recovery for London and the UK.”
While TfL continues discussions with the government with respect to the long-term funding, the terms of the H2 Funding Package have been amended to define the funding period as 18th October 2020 to 18th May 2021. All other provisions of the H2 Funding Package will remain in place.
TfL will also receive two additional instalments of extraordinary grant support totalling £260 million and a periodic top-up payment in agreement with the terms of the H2 Funding Package. It is estimated that the top-up payment will amount to approximately £225 million depending on the actual passenger revenue over the period between 1st April 2021 and 18th May 2021.
A TfL spokesperson said: “We continue discussions with the government on our need for further financial support and a long-term capital funding deal. This is vital for us to support a strong and robust recovery from the pandemic and to provide confidence to our UK-wide supply chain.”