TRANSPORT for London on Tuesday reached a multi-billion-pound bailout deal with Government that will avoid the capital’s transport system falling into “managed decline”.
But London Mayor Sadiq Khan warned Tube fare rises and some cuts to buses were still on the horizon as the settlement leaves TfL with a “significant funding gap”.
The capital’s tube and bus services were propped up during the pandemic with £5billion of funding signed off by ministers.
But income from fares has remained some 20 per cent below pre-Covid levels, putting extreme pressure on TfL’s finances.
The new agreement includes £3.6billion for maintenance and infrastructure projects and will see TfL reinstate its Healthy Streets programme, which helped encourages walking and cycling.
However Mayor Sadiq Khan said the settlement was “far from ideal” and left the network needing to find £230million by April 2024.
“The Government is still leaving TfL with a significant funding gap, meaning we will likely have to increase fares in the future and still proceed with some cuts to bus services,” Mr Khan said.
TfL chiefs still also face tough negotiations with unions, who ground the network to a halt during multiple days of strike action this year in an ongoing dispute over pay, pensions and contract terms and conditions.
Transport Secretary Grant Shapps said the Government deal delivers for Londoners as well as tax payers living elsewhere in the country.
It includes cash for a “number of projects set to revolutionise travel across London”, including brand new Piccadilly line trains, as well as modernisations and upgrades across the District, Metropolitan, Hammersmith and City and Circle lines.
“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,” Mr Shapps said.