News from Elly Baker: Give Londoners a say over transport cuts, Government urged

Give Londoners a say over transport cuts and fare hikes, Government is urged

Londoners must be given a say over major changes to their transport services, Labour’s London Assembly Transport Spokesperson, Elly Baker AM, says. Her new report – “TfL Funding Settlement – Another short-term sticking plaster” – calls on the Department for Transport (DfT) to hold a full public consultation before bringing in any further changes affecting the capital’s transport network. This comes after Londoners saw the Government hike up their fares, increase the congestion charge, and freeze frontline worker pay at Transport for London (TfL) during the pandemic. Ms Baker said the Government had used the emergency funding negotiations to “give London a kicking” and in doing so was undermining the country’s economic recovery.

On 1^st June, the Government said it would give TfL £1.08 billion in emergency funding for the period 29^th May - 11^th December 2021. As a result of the conditions that came attached to the funding, Londoners will see a cut in spending on transport projects, maintenance of the previous increase in the level and scope of the congestion charge, and a freeze to TfL staff pay. TfL have also been ordered to begin background research on bringing in driverless trains and to look at how they can raise an additional £500m-1 billion in funding each year. This comes on the back of two emergency deals in May 2020 and October 2020 respectively, which saw the Government insist on fares going up by 2.6% (an additional £68 this year for a zone 1-6 annual travelcard) and an increase in council tax to maintain free travel for under 18s and over 60s.

Last autumn, City Hall saw off some of the worst conditions that Ministers tried to attach to emergency transport funding, and were able to block the Government from expanding the congestion charge zone, scrapping free travel for children and older people, and increasing fares even further beyond RPI+1. Earlier this month, the Mayor says he prevented cuts to TfL which would have been of an equivalent scale to reducing the bus network by a fifth. But Ms Baker has warned the worse could still be to come if the Government follows through with their condition that TfL finds £500 million to £1 billion of extra income per year. TfL have warned that finding £500 million per year could mean either the Congestion Charge Zone would need to be extended to the North and South Circulars, that Londoners could see a year-on-year fare rise of 17% or see their council tax bills increase by £130-165 per year (for a band D property).

Fares make up 72% of TfL’s income with the former Mayor, Boris Johnson, having agreed to the Government axing TfL’s annual £700million operating grant from 2018. The transport body were forced to seek emergency funding after fares income plummeted due to Covid-19 – with a decrease of 90% during the pandemic’s peak. The Government handed no-strings-attached funding to private operators totalling £7 billion and lasting 18 months, whilst TfL has been given short-term deals lasting 6 months and amounting to £3.4billion.

The report also calls on the Government to work with City Hall on a deal that delivers long-term, sustainable funding, reinstates London’s operating grant and allows London to retain the £500million it raises in Vehicle Excise Duty each year, which is currently spent on other parts of the country.

Labour’s London Assembly Transport Spokesperson, Elly Baker AM, said:

“With the Government enforcing sweeping changes to TfL’s funding and support, there’s going to be a big impact on Londoners’ transport services, their fares, and maybe even their council tax. At the very least, Londoners deserve to have their say before Downing Street ploughs ahead.

“There’s a real injustice at play here. Londoners did the right thing in staying at home during the height of the pandemic, and now, because TfL needs some emergency help to cope with a drop in fares income, the Government are using it as an opportunity to punish Londoners with cuts to their services and rising transport costs.

“At some point, probably in the not too distant future, the Government are going to ask that people return to their workplaces. Hiking up fares and charges could be a big disincentive to people returning to their offices. With TfL acting as the arteries to the capital, which in turn is the beating heart of the British economy, giving London a kicking means giving the country a kicking. This approach will only undermine everybody’s recovery.

“TfL might be forced to implement these conditions, but make no mistake, these decisions are being made at the heart of Government and they need to be transparent with Londoners about what changes they’re making and why.”

ENDS