Statement from London Assembly on TfL’s financial woes

23 October 2018

In response to the Secretary of State for Transport, Chris Grayling MP’s comments that Transport for London (TfL) is suffering “deep financial difficulties”, Gareth Bacon AM, Chairman of the London Assembly Budget and Performance Committee said:

“The London Assembly holds the Mayor and the organisations he runs to account. The biggest of those organisation is TfL and we take our role very seriously.

“The comments from the Transport Secretary are not dissimilar to what we have been saying for the past year.

“TfL is certainly in some severe financial trouble. A number of factors have contributed to this situation and we continue to investigate those factors and the implications for Londoners.

  • TfL is facing a £700 million annual cut in Government funding
  • The Mayor’s fares freeze will cost TfL £640 million over four years [1]
  • Crossrail has been delayed and a later opening date is expected to cost TfL hundreds of millions in lost revenue.

“It’s clear that the primary cause of TfL's woes is the removal of the government grant. But the Mayor knew this was the situation before he took office and still imposed a fares freeze.

“We are one of the world’s greatest cities. It is absolutely essential that we have a world class public transport system. However, TfL is currently experiencing a perfect storm of fiscal uncertainty. We need to find a way through these issues and ensure TFL gets back into the black as soon as possible.

Notes to editors

  1. Read the Mayoral press release
  2. Find out more about the work of the Budget and Performance Committee
  3. Gareth Bacon AM is the Chairman of the Budget and Performance Committee
  4. As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.

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