TfL gets up to £485million in taxpayer cash to keep transport running

Transport for London gets up to £485million more taxpayer cash to keep tubes, trains and buses running until May 17 on top of previously-agreed £3bn bailout

  • Transport for London’s £1.8billion package agreed in November ends next week
  • It has been granted a seven week extension, potentially worth up to £485million
  • TfL’s finances were decimated by low passenger numbers caused by pandemic 
  • A new deal will be agreed after the London Mayoral elections on May, 6, 2021 

Transport for London (TfL) has secured a seven-week extension to its existing bailout worth up to £485million of taxpayers’ money from the Government.

A £1.8 billion funding package agreed in November 2020 to keep services running was due to expire next week.

But TfL has now secured a cash boost to continue running services around the capital.

The existing package has been extended to May 18 and comes with an additional £260m in base funding plus additional revenue support of approximately £225m from the Government.

Transport for London has been granted a seven week extension on the deal agreed in November 2020

The new deal takes the total Government support for TfL to more than £3bn since March 2020.

A TfL spokesman said: ‘We have today agreed with the Government that our funding will be extended until May 18 on the same terms that have applied to our funding for the second half of 2020/21.

‘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.’

TfL’s finances have taken a severe hit from the collapse in fare revenue during the coronavirus pandemic owing to the collapse of passenger numbers.

A £1.6bn bailout was agreed in May, followed by another worth £1.8bn last November.

A new deal will be discussed after the London Mayoral elections on May 6.   

Transport for London’s finances have been decimated by the ongoing pandemic as passenger numbers fell 

The extension takes the amount of money given by the Government to TfL to more than £3billion

Mayor of London Sadiq Khan said of the deal: ‘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.’

Grant Schapps, Secretary of State for Transport, said a future settlement will be considered once parts of the economy are reopened and demand on the transport network is known.

He said: ‘The Government and Mayor of London have agreed to extend the current Transport for London funding deal. The deal was due to run out on 31 March 2021, however things have changed since we set the end of March for the next review of support to TfL.

London Mayor Sadiq Khan, pictured cycling in Southwark, said the extension will ‘enable TfL to carry on running the safe, reliable and frequent services’

‘The roadmap set out by the Prime Minister to cautiously and safely reopen society and our economy means we can better understand the potential recovery in passenger demand, ensuring we deliver a sensible and appropriate deal in the future.

‘As a result, and given the Mayoral election timetable, we have therefore agreed to roll over the existing funding deal until 18 May on the same terms as now, providing certainty over the pre-election period.

‘Together, the Government and the newly elected Mayor will agree a new funding deal after the elections in May 2021. By this point non-essential retail and other parts of the economy should be open and transport demand on the network will be considered when formulating a future settlement.

‘Support for London needs to be balanced with the national recovery and supporting the national transport network as a whole. Since March 2020 the Government has spent £11bn supporting the running of the national transport network apart from that directly provided to TfL, whilst continuing to spend money on vital infrastructure projects to level up the national transport network outside of London.’

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