Transport for London (TfL) has secured a £1.8bn government bailout, which will keep services running until 2021.
A funding agreement with government has been reached, subject to actual levels of passenger revenue. The agreement will enable Transport for London (TfL) to continue to support the capital for the remainder of the financial year as discussions on longer-term sustainable funding continue.
Andy Byford, London’s Transport Commissioner, said: “Reaching this agreement with the government allows us to help London through this next phase of the pandemic. We will continue to work with the Mayor and the government on our longer-term funding needs. As always, our staff are working tirelessly to serve London’s people and businesses; supporting the city’s economy and providing an excellent, safe and reliable service to our customers every day.”
Amendments to the Congestion Charge introduced in June as part of a previous bailout – a 30% increase in the fee and longer operating hours – will remain in place due to the new deal.
Transport Secretary Grant Shapps said: “This deal is proof of our commitment to supporting London and the transport network on which it depends.The mayor has pledged that national taxpayers will not pay for benefits for Londoners that they do not get themselves elsewhere in the country.”
TfL said it would receive a “core amount of £1bn”, consisting of a £905m grant and £95m of borrowing. It costs £600m a month to keep the network running on its current reduced service.