Transport for London (TfL) and the government have reached a funding agreement projected to be worth roughly 1.8 billion GBP.
The actual figure will vary depending on passenger revenue, but it will allow TfL to continue running services in London for the rest of the financial year. Talks on longer-term sustainable funding options are ongoing.
The funding will give Transport for London the shortfall it as suffered as a result of revenue losses in the face of the coronavirus pandemic. The core amount in the funding package is 1 billion GBP for the period of 18 October 2020 to 31 March 2021. It is made up of an Extraordinary Support Grant worth 905 million GBP as well as 95 million GBP of incremental borrowing by TfL from the Public Works Loan Board.
Because of the large amount of uncertainty with regards to passenger numbers, the funding package can be modified depending on actual passenger revenues. TfL believes it will provide around 1.8 billion GBP of funding. TfL has committed to contributing around 160 million GBP to the forecast funding shortfall, either in the form of additional income or savings through a mix of lower capital and operating outgoings coupled with firmer financial control measures.
“Reaching this agreement with the government allows us to help London through this next phase of the pandemic. We will continue to work with the Mayor and the government on our longer-term funding needs. As always, our staff are working tirelessly to serve London's people and businesses; supporting the city's economy and providing an excellent, safe and reliable service to our customers every day.”
The current temporary changes to the Congestion Charge will stay in place as an ongoing measure to address the coronavirus pandemic. The government had wanted to greatly extend the Congestion Charge zone. Free travel for under-18s and over-60s will also remain.
