TFL’s update on government funding settlement outlines new investment

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TFL update on government funding settlement details £1.2bn core funding deal, continued revenue support and will enable new investment in railways

The Transport for London (TFL) has published an update on the new funding agreement with the government.

The deal with the government previously left a gap in TfL’s budget of around £740million over the next two years.

The new terms of the funding agreement secure passenger revenue through March 2024, which accounts for slow returns to pre-pandemic passenger behavior.

It also allows TfL to continue its committed investment in transport, which includes the purchase of new trains for the Piccadilly line and the Docklands Light Railway, the completion of ongoing projects such as the modernization of four lines, the upgrade of Bank station and the transformation of the Old Street roundabout, and completing the transformational investment in the Elizabeth range.

TfL’s update also indicates a partnership with the DfT and the London Borough of Hammersmith & Fulham to reopen Hammersmith Bridge and plans to come up with a bus action plan. Other development plans in London include investing in the borough’s roads, with around £80million a year spent on projects that benefit pedestrians and cyclists.

TfL has taken steps to balance its budget

In order to agree to the deal, TfL identified measures such as these, including maintaining its cash balance at £1.2bn, assuming it benefits from the inflation mechanism built into the agreement and release of budget contingencies.

They have set an additional savings target of around £90m in 22/23 and £140m in 23/24, on top of the recurring savings program of £730m a year to which TfL has already committed.

The statement from Transport Commissioner for London Andy Byford is below:

“After weeks of negotiations, we have today reached an agreement with the government on a funding agreement until March 31, 2024. This hard-won agreement means that we can now continue to support the recovery. of London after the pandemic – to the benefit of the whole country. There is no recovery in the UK without recovery in London, and no recovery in London without a properly funded transport network.

“The agreement with the government means that throughout the funding period, TfL expects to receive additional core funding of around £1.2 billion from the government until March 2024 and grants TfL continued revenue support if passenger numbers do not recover at the expected rate, which is crucial at this stage. period of continued economic uncertainty. This helps us avoid large-scale cuts to services and means we will commit £3.6bn to capital investment over the period, with around £200m of new government capital funding. beyond previously budgeted sources like corporate rates, which devolved to the Mayor in 2017. The agreement also allows us to increase our asset renewal program to ensure the reliability of our network and means we can restore our Healthy Streets program, making our roads safer and more attractive for pedestrians and cyclists.

“The support offered by the government has left an unfunded void in our budget, which we have worked hard to identify how we will fill. This work has progressed well and we are confident that we will achieve an outcome that will allow us to balance our budget and maintain our minimal cash balance. We will have to make progress on our plans to further modernize our organization and make us even more efficient, and we will still face a series of difficult choices in the future, but London s “will move away from the controlled decline of the transport network. We are grateful for the support of the mayor and the government as we now strive to continue to serve the capital and invest in safe and reliable services for the millions of people who need them .

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