Transport for London is planning an emergency meeting about its finances amid rumours the organisation is about to run out of money and that government bailout talks are not going well.
City AM reports that multiple sources inside City Hall believe that there will not be an agreement before Saturday, which is the day Mayor Sadiq Khan says is the day the £1.6 billion bailout money it got in May will be spent.
Tony Travers, professor of local government at the London School of Economics, is quoted as saying the meeting could lead to City Hall issuing a Section 114 notice, which would “likely mean a quite radical reduction in [TfL] services”. Local governments have to issue a Section 114 notice and immediately make budget cuts if their cash reserves run below a certain point.
The financial paper further adds that some of London’s biggest businesses are urging City Hall and Westminster to come together to get a good deal for the sake of the capital’s connectivity and competitiveness.