The UK government has agreed to supply 250 million GBP in funding to support Transport for London’s (TfL) investment programme in upgrading the capital’s transport system.
Under this agreement, the funding cannot be used to support TfL’s daily operations. Instead, it will be invested in improvements, including the rollout of new trains on the London Underground’s Piccadilly line.
This latest announcement brings the total government support for TfL to over 6.6 billion GBP since 2020.
“We’re investing in transport across the country and today’s agreement will have a tangible, positive impact not just for people travelling in and around the capital but also the millions who visit every year.
“We have invested billions into the capital’s transport system in recent years. This investment must be well managed in a way that doesn’t unfairly burden the pockets of taxpayers and motorists.”
Throughout 2023, TfL has been working to achieve operational financial sustainability and is expected to reach this goal by the end of the financial year.
As part of its deal with the government, in July, TfL will set out a plan to maintain and strengthen its finances going forward.
“Through a huge effort to reduce costs and rebuild our ridership and revenue following the pandemic, TfL is now on track to be financially sustainable in terms of its day-to-day operations. We are also able to cover the cost of the majority of our capital investment.
“We, alongside London’s business stakeholders and others, have consistently made the case that additional government support for capital investment in transport is needed if we are to be able to continue to deliver vital improvements to London’s transport network, unlock new homes and support growth across London and the UK.
“It is good news that we have now reached an agreement with the government on the capital support that they will provide over the next year, and we are grateful for the support. However, we will now need to reassess our recent draft business plan and address the impact of the continuing shortfall in funding. That work is underway so that we can confirm as soon as possible what we will deliver for London.”
