FOI - New Revenue Sources [Jul 2023]

Your request 

According to the document titled 'New Revenue Sources' which is found on the Mayoral decisions pages under the title 'Supporting documents':

• MD3014 Proposed permanent changes to free travel arrangements for older Londoners | London City Hall Appendices A-C
• MD3028 September 2022 fares revision | London City Hall Appendicies 2 & 3

1. Could you publish the full document titled 'New Revenue Sources', which includes all pages of the appendix: assessments?
2. Can you confirm it was the government which suggested to the Mayor of London and the management TFL to agree to the conditions (including the Ultra Low Emission Zone (ULEZ) expansion to Greater London, withdrawing from the Travelcard Agreement, free travel restrictions for 60+, fare increase, etc.) as part of the financial settlement?
3. Are the conditions from the 'New Income Sources' document compulsory for the Mayor of London and TFL to agree as part of the financial settlement? And what would happen if they disagree with the conditions?
4. Have there been any risk or impact assessments on London's economy if TFL (including their services such as buses, Tube, Overground, Elizabeth line etc.) goes bankrupt by issuing a section 114 notice, which obliges the central government to intervene to ensure local services are sustainable?
5. Can you confirm if the allegations made by the government and Members of Parliament (MP) in regards to the mismanagement of TFL's finances by the Mayor or TFL's management are true? (References to the allegations made by the government and MPs from my freedom of information request to the Department for Transport

Our response

1. This information has been published online by Transport for London: https://content.tfl.gov.uk/tfl-new-revenue-sources-report-august-2021-acc.pdf
2. The full terms of the funding settlement can be found in the exchange of letters between TfL and Government, which have been published online: Funding letters - Transport for London (tfl.gov.uk).

The relevant letters are those dated May 2020 onwards. The May 2020 letter refers to the “Government-led review of TfL’s financial position and future financial structure [including].. options for revenue maximisation” and “The potential for raising more non-fare based revenue and commercial income”.

3. Please see exchange of letters referred to above
4. The decision to issue a section 114 notice is one taken by TfL’s Chief Finance Officer. If the CFO considered this necessary, a report would be prepared for the TfL Board assessing the consequences. You may wish to refer this question to Transport for London directly, which is considered a separate body for the purposes of the Freedom of Information Act.
5. Before the pandemic hit, TfL was on a solid financial footing thanks to the Mayor, as since 2016 and before the pandemic, TfL has saved £1.1 billion from its annual operating costs. The Government’s 2015 removal of its operating grant made TfL over-dependent on fares income, which created a financial emergency when the pandemic hit. But, following tough negotiations and the Mayor’s commitment to prioritise funding for London's vital public transport, TfL is on track for financial stability, is committed to making savings in the years ahead, ridership across the network is increasing and there have been major improvements to the capital’s public transport network. Information about TfL's financial position is available through its Annual Report and Statement of Accounts: Annual Report - Transport for London (tfl.gov.uk)