TfL draft budget predicts rise in passenger income

TRANSPORT for London’s passenger income is expected to rise from £4.65 billion in 2017-18 to £4.77bn in the next financial year, with other operating income rising by 21% to £883 million.

The figures were released in TfL’s draft budget for 2018-19 published on March 12, as it aims to move into operating surplus by 2021-22.

Operating costs are forecast to rise by 7% from £6.2bn to £6.66bn. Debt levels will rise from a predicted £10.9bn in 2017-18 to £11.66bn in 2018-19.

The budget predicts no growth in passenger numbers on London Underground, but a 70% increase to 78 million on the Elizabeth Line (Crossrail), the central section of which is due to open in December this year. Growth on Docklands Light Railway, London Overground and London Trams is predicted to rise by 0.9% to 340 million passengers.

Passenger income on London Underground is expected to rise marginally to £2.68bn, but direct operating costs are predicted to fall by £11m to £2.12bn. The amount of money spent on new capital investment is to rise from £726m to £788m, an increase of 9%.

On the Elizabeth Line, revenues are expected to soar by 72% to £146m as new sections of the route open, while other operating income such as advertising is set to rise from £4m to £125m.

However, operating costs will also increase significantly, from £120m in 2017-18 to £379m in 2018-19. Overall, the route is predicted to have a net operating deficit of £133m in 2017-18. Capital expenditure is due to fall as Crossrail nears completion, with construction costs falling from £1.5bn in 2017-18 to £435m in 2018-19.

On TfL’s other rail operations, passenger income is expected to rise from £427m to £434m, but higher operating costs are predicted to turn an operating surplus of £7m in 2017-18 into a deficit of £34m in the following year.

TfL is building a 2.8-mile extension to London Overground from Barking to Barking Riverside, for which early works have started. The first passenger services are expected to run in 2021.

London Transport Commissioner Mike Brown said: “This budget sets out what we will deliver in the next year as part of the Mayor’s Transport Strategy, as we work to achieve his vision for 80% of journeys to be made by walking, cycling and public transport by 2041.

“This will be achieved alongside our extensive savings programme which is reducing our day-to-day costs, while protecting frontline services, as we manage a £700m per year reduction in Government subsidy. This will put us well on the way to generating an operating surplus for the first time in our history in 2021-22.”