Transport expenditure in London 2020
Current Issues Note 60 considers the demand for transport services, the rationale for investment, and the levels of investment, who funds it and who pays.
London spills over its administrative boundaries, and there are 2 million more people in it every day than its 8.8 million residents. The city relies on public transport, and so public investment – 58% of all journeys on public transport in Britain are at least in part in London. People make far more use of public transport than elsewhere in the country, and increasingly so.
Public transport expenditure is needed because congestion in the capital is worse than other UK cities. While benefits flow to Londoners through additional homes, jobs, and business activity they also flow to the rest of the country through the higher tax revenue raised.
London increasingly contributes directly to its transport projects. For example, 55% of the cost of Crossrail will be met by London funding sources. Current funding mechanisms, though, are insufficient to meet London’s needs