TfL funding review

Government publishes terms of reference for the financial review of TfL… as TfL announces its own review.

The Government has published its terms of reference for the financial review of Transport for London following its funding package announced on May 14 to combat the effects of the COVID-19 pandemic.

The review will have three levels, the first of which is to review TfL’s current obligations and functions as well as its income stream and the effect of the pandemic on them.

The second will develop and assess options for short-term revenue maximisation and the potential for raising more non fare-based revenue and commercial income, identify opportunities to deliver further efficiencies, and review the approach to prioritising capital spending.

The final element will examine evidence and options for changes which could put TfL in a fully sustainable financial position by 2024-25, when its current business plan ends.

The review will be led by the Department for Transport, with support from external advisors, the Department’s special representatives to the TfL board and TfL. It will report to Secretary of State for Transport Grant Shapps with oversight from the Prime Minister and Chancellor of the Exchequer. It is due to be completed by the end of August.

Meanwhile, London Mayor Sadiq Khan has announced that an independent panel of experts has begun its own review of Transport for London’s long-term future funding arrangements and finance options.

The work will be carried out in parallel with the Government’s review and is expected to conclude in September.

The panel membership comprises former TfL board member and Oakervee Review panel member Stephen Glaister CBE, Arup Global Rail Business Leader TC Chew, Commissioner for the National Infrastructure Commission Bridget Rosewell CBE, and former Vice-President of the European Investment Bank Sir Jonathan Taylor.