News from Darren Johnson AM: TfL cycle budget will plug funding gap after Barclays quit cycle hire sponsorship deal

11 December 2013

Darren Johnson AM has reacted to the announcement yesterday evening by Barclays that the bank will not be renewing its sponsorship deal for London’s cycle hire scheme. In January 2013, the Mayor assured the public that TfL would receive £50m from Barclays over eight years and would continue to operate the contract as agreed (1).

Darren has uncovered figures within TfL’s latest draft business plan which show the cost to TfL of running the scheme over the next ten years has increased from £75million to £144million (2). This new figure represents approximately a seventh of TfL’s total cycling budget for the next ten years.

On Monday, the Mayor announced that only 33 of his top 100 priority junctions are going to be made safer using money from the Better Junctions program, during the next ten years.

Darren Johnson AM commented:

"The Mayor originally said the bike hire scheme was going to pay for itself. But due to his mismanagement and this poor sponsorship deal it is going to soak up a lot of the funding needed to create safer junctions and quality cycle routes.

"Earlier this year, the Mayor told me publicly that the £50m from Barclays was secure, which means that he either he was misleading us or he simply didn’t know. Barclays have had an amazing amount of publicity on the cheap."

ENDS

Notes to Editors

  1. In January 2013, Darren questioned the Mayor of London on the income the expected over coming years from Barclays as part of the sponsorship scheme: http://www.london.gov.uk/mqt/public/question.do?id=44936 and http://www.london.gov.uk/mqt/public/question.do?id=44937
  2. ‘Background information for the Transport Committee’s meeting on cycling on 10th December 2013’, page 16, “Cycling in TfL's Business Plans 2011 and Draft 2013 (£m) - Appendix 3 - Cycling Vision Portfolio financial breakdown (2011 and Draft 2013 Business Plans)” produced by GLA officers using TfL financial data for London Assembly Transport Committee members
  3. Transport for London’s draft 2013 business plan will be presented to the TfL board today and can be viewed here: http://www.tfl.gov.uk/assets/downloads/corporate/Board-20131211-Part-1-Item07-TfL-Business-Plan-2013.pdf
  4. Darren Johnson AM is available for comment