London’s City Hall is warning that a failure to strike a long-term funding deal for TfL would result in a £12bn hit to the capital’s economy. 

London’s financial paper City AM says that, as London’s Mayor and Transport for London negotiate with the Department for Transport over a new funding package for the network,

An emergency bailout deal was originally planned to come to an end last Saturday but has been extended until this Friday.

City AM says new analysis suggests that under a ‘managed decline’ scenario, in which 18% of bus and 9% of tube services are cut and a host of road upgrades abandoned, some £7.3 billion-worth of ‘transport user benefits’ would be lost and a further £4.5 billion of economic growth also foregone.

It adds that this could mean £2.1bn less tax revenue over the next 10 years due to London’s slowed growth.

(Picture – Highways News)