A settlement which will support almost £3.6 billion worth of projects and secure the long-term future of London’s transport network has been agreed with TfL.
The settlement, which includes just under £1.2 billion of upfront funding and brings government’s total funding to over £6 billion, matches the Mayor’s own pre-pandemic spending plans. It will ensure the network is not only protected against potential lost revenue caused by uncertainty of post-pandemic demand but will also enable the delivery of a number of projects set to revolutionise travel across London.
This will include brand new Piccadilly line trains, as well as modernisations and upgrades across the District, Metropolitan, Hammersmith and City and Circle lines for millions of Londoners.
Specific upgrades include supporting the long-awaited repair of Hammersmith Bridge, the extension of the Northern Line and vital improvements to Elephant and Castle station – none of which would have been possible without this funding.
The landmark deal will dedicate £80 million every year to active travel schemes, expanding walking and cycling infrastructure which will reduce congestion and pollution across the capital. The deal also sees the establishment of an independent property company that will start on 20,000 homes on TfL’s land within 10 years.
As part of the agreement, the government ensured the Mayor agreed to continue work on the introduction of driverless trains on London Underground, something the Transport Secretary believes is key in London maintaining its position as Europe’s greatest transport network.
Transport Secretary, Grant Shapps said: “For over two years now we’ve time and again shown our unwavering commitment to London and the transport network it depends on, but we have to be fair to taxpayers across the entire country.
“This deal more than delivers for Londoners and even matches the Mayor’s own pre-pandemic spending plans but for this to work, the Mayor must follow through on his promises to get TfL back on a steady financial footing, stop relying on government bailouts and take responsibility for his actions. Now is the time to put politics to one side and get on with the job – Londoners depend on it.”
As part of the settlement the Mayor has also committed to:
- *submitting proposals to reform pensions, in line with TfL’s plans to become financially sustainable, by the end of September
- *continue to progress ongoing initiatives to modernise, reform and become more efficient
- achieve the revenue generation proposals promised in February and progress proposals through public consultation
The Mayor and TfL will be responsible for setting out and implementing areas where these changes can be made as well as accelerating crucial reforms to ensure TfL becomes financially sustainable by 2023.
This latest settlement follows on from four previous emergency deals, over £5 billion of upfront funding and a pledge of over a billion pounds of investment per year at the most recent spending review at a time of significant financial pressure to ensure vital services remained running.