MD3393 Revocation of Oyster fee direction

1.1.    When the COVID-19 pandemic struck in 2020, it had a devasting impact on TfL’s ridership levels and, consequently, TfL’s finances. TfL therefore required extraordinary government funding, so as to continue delivering an effective and efficient transport service to Londoners throughout the pandemic and beyond.
1.2.    The government at the time required TfL and the Mayor to introduce measures to generate significant revenue savings in order to receive this funding. Four such measures, relating to fares and ticketing, were identified and progressed. All of these were ultimately decided by the Mayor. These included the proposal to increase the fee for standard Oyster cards from £5 to £7; and make the fee non-refundable. 
1.3.    This was approved in Mayoral Decision (MD) 3028, in which the Mayor issued a direction requiring TfL to increase the fee accordingly. 
1.4.    Ordinarily, TfL would have taken the decision on the Oyster card fee without being directed to do so, as part of its responsibilities for fee-setting. At the time, the decision was taken by the Mayor, due to the extraordinary circumstances relating to the COVID-19 government funding settlements. All fares and ticketing decisions made further to government funding agreements were taken by the Mayor, rather than TfL. The Mayoral direction issued on that fee in MD3028 was not time-limited, and remains in effect. 
1.5.    To revert to the previous approach of TfL determining changes to the fee, as part of its fee-setting responsibilities, the direction issued in MD3028 needs to be revoked. This is what this MD3393 asks the Mayor to approve. A draft revocation is attached at Appendix 1.
1.6.    Should the direction be revoked, the current Oyster card fee (£7) will remain, unless and until it is subsequently changed by TfL. 
 

2.1.    Revoking the extant Mayoral direction to TfL regarding the Oyster card fee, made under MD3028, will allow TfL to revert to the usual fee-setting process and responsibilities; and to change the fee as required. 

3.1.    There are no equality implications arising from the decision sought from the Mayor. 
3.2.    Should TfL change the Oyster card fee, it will consider any equality implications as appropriate, and further to statutory obligations.
 

Key risks and issues
4.1    Should the direction not be revoked, it will remain in place and no further changes can be made to the Oyster card fee. Revoking the direction will allow TfL to revert to its usual fee-setting responsibilities. 
Links to Mayoral strategies and priorities
4.2    The setting of Oyster card fees has historically been carried out by TfL as part of its fee-setting responsibilities. Revoking the current direction means reverting to the usual process, thereby aligning with TfL’s statutory responsibilities. 
Impact assessments and consultations
4.3    No consultation is required for the revocation proposed by this MD. 
Conflicts of interest
4.4    There are no conflicts of interest to note for any of the officers involved in the drafting or clearance of this decision form.
 

5.1.    There are no direct financial consequences for the GLA arising from this decision.
5.2.    There are no direct financial consequences for TfL arising from this decision. Should TfL seek to implement a change to the Oyster card fee, the financial implications would be considered through TfL’s usual business-planning process. 
 

6.1.    Under section 155 (1) of the Greater London Authority Act 1999, the Mayor has the power to issue general and specific directions to TfL as to the exercise of its functions. Section 421(2) of the Act provides that the power to issue directions includes a power to revoke. 
6.2.    The direction to TfL under MD3028 was issued using these legal powers. The giving of statutory directions to functional bodies is a matter that the Mayor has reserved for himself as a Category 2 matter, as identified in Mayoral Decision-Making in the GLA. 
6.3.    Given this – and the absence of any delegated power authorising a member of GLA staff to revoke the direction issued under MD3028 – the decision to revoke it is for the Mayor to take. 
 

7.1.    The revocation would become effective when the Mayor signs Appendix 1 to this MD, should he choose to do so. 

MD3393 - Appendix 1 - Revocation - Signed