Increase in costs of Tube upgrade should not fall to Londoners

17 DECEMBER 2009

Commenting on today’s interim ruling by the PPP Arbiter that the legitimate cost of the next phase of Tube upgrades is £4.4 billion – £400 million higher than London Underground’s estimate - Caroline Pidgeon AM, Chair of the London Assembly Transport Committee, said:

“The Arbiter has set out what he believes is the legitimate cost of the next phase of the upgrade works – but his ruling does not resolve how the additional costs will be met.

“As our report on the Underground PPP noted[1], the Government provided additional money to cover the inefficiency and ultimate failure of Metronet, recognising that an efficient Underground is crucial to London’s ability to continue to drive the national economy.

“The Arbiter has determined a figure that is around £400 million over London Underground’s estimate for undertaking the next stage of the Tube Lines contracts.  The question is whether the Government will now step in to help Transport for London with additional funding[2], rather than leaving London to shoulder the burden.

“We offer our full support to the Mayor in his efforts to persuade the Government to meet the funding gap.

“There are a lot of complex arguments around how additional costs should be financed, but the key thing from a passenger perspective is that the work gets done efficiently and with as little disruption as possible[3].

“Londoners simply want the improved service on the Tube they’ve been promised, and they cannot be expected to meet this new increase in the costs of the works.”

Notes to Editors

1. Delays possible: maintaining and upgrading the London Underground (March 2009)
2. London Underground believes the next phase of the work should cost around £4bn; Tube Lines claims it needs to spend £5.8bn (originally £6.8bn).
3. Too close for comfort: Passengers’ experiences of the London Underground (Dec 2009)
4. Caroline Pidgeon AM, Chair of the Transport Committee, is available for interview – see contact details below.
5. As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.

For more details, please contact Dana Gavin in the Assembly Media Office on 020 7983 4603/4283.  For out of hours media enquiries please call 020 7983 4000 and ask for the Assembly duty press officer.  Non-media enquiries should be directed to the Public Liaison Unit, Greater London Authority, on 020 7983 4100.