The Funding Package agreed between TfL and the UK government in May 2020 is being extended by two weeks while the two parties continue their talks about the ongoing financial requirements of TfL.
In May, the government said it was making almost 1.1 billion GBP of funding available to TfL along with a loan of 505 million GBP, in a package due to expire in October. Because TfL’s actual funding shortfall up to 17 October was less than these funds made available, primarily because passenger numbers have been higher than expected, TfL has agreed that it will use the remaining funds until 31 October 2020 to allow the two parties to continue their discussions around TfL’s financial future.
Unlike other urban transport providers, TfL was required by the government to be financially self-sufficient prior to the coronavirus outbreak. The collapse in passenger numbers obviously had a huge impact on TfL’s revenues from ticket sales.
A spokesperson for TfL said:We continue to discuss our funding requirements with the government and hope these discussions can be concluded successfully soon, so we can help London through the next phase of the pandemic.
We have today agreed with the Government that our funding will be extended for two weeks so that these constructive discussions can be concluded.
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