Extra £44m to keep trams on the tracks
But government deal will ‘only cover next 12 weeks’
THE government has announced it is extending coronavirus support to buses and trams outside London with £44m allocated to Metrolink, which was at risk of running out of money.
Greater Manchester Mayor, Andy Burnham, has previously warned the future of Metrolink could be threatened if it wasn’t given additional funding to mitigate the economic hit caused by the lockdown, which saw losses of £6m a month.
He welcomed the news of the government’s extra £44m funding.
Mr Burnham said: “Getting the cities going again will be crucial to the recovery of the UK economy.
“As people think about returning to the office, it is vital that we are able to offer them a Covid-safe public transport service to build the confidence on which any recovery will have to be based.
“That’s why I am pleased that the government has removed the uncertainty that has been hanging over Metrolink. “
But he sounded a note of caution - as he said the latest deal only covers the next 12 weeks and he urged the government to “consider making a clear commitment to cover all losses up to the end of the financial year so that we can plan for the city’s recovery with more certainty.”
He added: “Until the pandemic hit, Metrolink operated without subsidy, with its revenues used to operate the network and repay the borrowing used to fund its expansion.
“Given the huge drop in ticket revenue, and without sufficient support from the government, we would have a deficit running into tens of millions of pounds this year and next.
“I am grateful to the Transport Secretary for once again showing he is prepared to listen to us and for providing this support.
“But what we are asking for going forward to support the country’s largest tram network is a drop in the ocean compared to the transport package for London.”
He pointed out that “the success of the Northern Powerhouse depends upon sustained investment in transport - both now and into the future.”
Greater Manchester mayor Andy Burnham previously criticised the government in June for funding Metrolink in ‘little chunks’ while ploughing £1.6bn into London’s public transport network.
Since the start of lockdown, Metrolink, which pre-Covid was fully funded by ticket prices, lost around £6m a month - expected to equate to a shortfall of around £30m in its budget.
The £44m funding will ‘enable operators to mitigate the impact of the loss of revenue, while continuing to build back to normal service levels,’ the government said.