London gets £200 million in Government support
Settlement to run until June as negotiations on longer-term deal continue.
A FOURTH extraordinary funding package for Transport for London (TfL) was agreed by the Government on February 25.
To be paid in three instalments from April 29, the £200 million settlement will run until June 24.
A Department for Transport statement said: “Recognising the need for stability and forward planning, the new deal also includes the potential for a longer-term capital investment settlement for TfL. This would be agreed ahead of the next financial year and will be dependent on the mayor and TfL’s cooperation with the Government, including providing sufficient information regarding its capital investment plans and meeting conditions set out in the previous settlement.”
Options
It added that Mayor of London Sadiq Khan would consult on options to raise between £500 million and £1 billion of additional yearly revenue from 2023, plus cost savings of up to £400 million in 2022/3, as well as “delivering against TfL’s accelerated modernisation plan while making significant progress in moving the pension fund into a financially sustainable position.”
As RMT members employed on London Underground staged strike action in early March, the union’s general secretary Mick Lynch said they were “not going to be used as pawns in a political fight between the mayor and the Government which threatens their futures and their livelihoods.”
TfL chief operating officer Andy Lord described the action as “completely unnecessary”. He said no changes to pensions, terms and conditions or job losses would result from the proposals set out.
■ On March 1, the Government announced a final tranche of pandemic-related support for light rail and bus operators in England of over £150 million to run until October. As further details were awaited regarding the allocation of the funding, there were warnings from within the industry that the financial impact of Covid-19 would be likely to take considerably longer to overcome.