Transport for London’s emergency funding agreement with the government has been extended until May 28, the Department of Transport said.
Originally agreed last October, the current funding program was due to expire in March before being extended until today (May 18), but the Department of Transport announced this morning that it would be extended for another 10 days ” while a longer term financing offer is made ”.
A Department for Transport spokesperson said: ‘The government is committed to supporting London’s transport network during the pandemic and has already provided more than £ 3 billion in emergency funding to TfL.
“We continue to discuss any further funding requirements with TfL and the mayor, and any additional funds provided will continue to move TfL forward on a more financially sustainable basis.
“We have agreed to postpone the existing financing agreement until May 28 on the same terms as now, while a longer term financing offer is made.”
Due to overdependence on fares, TfL saw its revenue drop by around 90% during the first lockdown last year, with metro ridership dropping by around 95% and the number of bus passengers by 85%.
Although government funding programs have kept TfL operating during the pandemic, the Mayor of London and TfL have both called for a long-term sustainable funding model to be agreed.
A spokesperson for TfL said today: “We continue to discuss our funding needs with the government and hope that these discussions can be concluded successfully quickly, in order to enable a strong and robust recovery from the pandemic.
“We agreed today (May 18) with the government that our current funding agreement will be extended until Friday, May 28 so that these constructive discussions can be concluded.”
Meanwhile, a spokesperson for London Mayor Sadiq Khan said a long-term funding deal for TfL is “essential for London and the rest of the country”.
As of 10 a.m. yesterday (May 17), the number of metro rides had increased by 5% from the previous week, although they still only represent 37% of pre-pandemic demand.
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This notice was published: 2021-05-18 11:00:00