Problems down the line for TfL finances
- Mayor’s fares freeze will cost TfL £640 million over four years
- Bus hopper ticket will cost £30 million per year
- TfL already facing £2.8 billion cut in Government funding to 2020-21
An investigation into the increasing financial pressures on Transport for London (TfL) has raised concerns over TfL’s ability to plug the gaps in its finances, and the impact this could have on services for passengers.
The London Assembly Budget and Performance Committee released its report “Transport for London’s financial challenge” today.
It identifies that the reduction of its revenue grant from Government, the Mayor’s fares freeze and bus hopper ticket commitments are putting TfL under enormous pressure, and the organisation now faces a cocktail of financial risks for which it does not appear adequately prepared.
Of particular concern to the Committee are the risks to TfL’s capital investment programme. The previous Mayor’s budget for 2016-17 set out a list of TfL projects that were under threat, including the Sutton tram extension and building of new stations at Old Oak Common.
This report highlights that capital investment projects such as these might have to be scaled back, deferred or cancelled altogether if TfL cannot generate more income or find other ways to save money.
Gareth Bacon AM, Chairman of the Budget and Performance Committee, said:
“Major capital investment in the transport network is needed to keep London moving as its population continues to grow. But the funding to support this investment is now at risk. Government funding will be cut to zero faster than TfL had previously expected. And the Mayor’s fares freeze will put another dent in TfL’s finances.
“Will TfL be able to deliver the Mayor’s transport priorities? What we heard in this investigation hasn’t exactly filled us with confidence.”
Notes to editors
- The report Transport for London’s financial challenge is below.
- Mayor of London. The Greater London Authority Consolidated Budget and Component Budgets for 2016-17. March 2016. Pages 39-40.
- This refers to the revenue grant. Government will continue to provide a capital grant for TfL.
- Gareth Bacon AM, Chair of the Budget and Performance Committee is available for interview. See contact details below.
- As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
For media enquiries, please contact Ben Walker on 020 7983 5769. For out of hours media enquiries, call 020 7983 4000 and ask for the London Assembly duty press officer. Non-media enquiries should be directed to the Public Liaison Unit on 020 7983 4100.