Government signs new £ 1bn financing deal with TfL UK News

The government today approved a new £ 1.08 billion funding package for TfL which will extend its financial support until 11 December.

As part of the deal, TfL is expected to make further cuts, including in its pension plan, or find new sources of income over the next two years.

London Mayor Sadiq Khan said this morning that “this is not the deal we were hoping for” and criticized the government for providing another “sticky plaster” in the short term.

Mr Khan said: ‘This short-term settlement is yet another sticky plaster, so I will look to work with the government over the coming months to agree on a longer-term funding agreement for TfL that is to be reached. both fair and just for Londoners and the whole country. .

“I have said on several occasions that I want to build bridges with the government and work constructively with ministers in the interest of London – and in the national interest – as we seek to recover from the pandemic. It remains the case, but I will always stand up for London and be honest with Londoners when the government makes decisions that could negatively impact our city.

TfL is now expected to find an additional £ 500-1bn per year from 2023 under the terms of the new funding plan, but Sadiq Khan said “there are very few options for doing so”.

The Department of Transport (DfT) also called on TfL and the mayor to work on introducing driverless trains to the metro network, although the mayor said that “we will oppose any future demands to force TfL to put implementation of driverless trains on the London Underground. Underground”.

Transport Secretary Grant Shapps said the conditions imposed by the agreement will ensure that TfL is “a modern, efficient and viable network for the future”.

Mr Shapps said: ‘Throughout this process the government has maintained that these support programs must be fair to UK taxpayers and provided that action is taken to put TfL on the path to recovery. long-term financial sustainability. As part of today’s settlement, the mayor has agreed to take further steps that will help achieve this.