Deputy Mayor warns about jobs and contracts in East Midlands

Deputy Mayor visits East Midlands and issues stark warning about future jobs and contracts if TfL does not receive long-term funding

• Seb Dance travelled to Derby to visit the Alstom train factory where new Elizabeth line trains were built, and Tidyco, a key supplier of Tube train parts
• TfL supply chain supports tens of thousands of jobs outside London which are at risk without long-term capital funding

The Deputy Mayor for Transport, Seb Dance, today [Friday 17th June] called on the Government to provide a long-term funding deal for Transport for London (TfL) to help protect jobs and contracts across the country.

Visiting TfL suppliers in Derby, the Deputy Mayor reiterated how thousands of jobs around the UK linked to major transport projects in London could be at risk if TfL does not receive long term funding.

The Deputy Mayor travelled to Derby to see the purpose-built Alstom train factory where the Class 345 trains running on the new Elizabeth line were built. Employing 6,000 people across the UK and Ireland, Alstom design and build trains at Derby, the UK’s largest train factory. Alstom is one of TfL’s leading suppliers, having also built the new Tube trains on the Circle and District line, as well as the new trains on the London Overground. TfL’s contract with Alstom to build the Elizabeth line trains supported 760 UK manufacturing jobs and 80 apprenticeships.

In Derby, Seb also visited Tidyco, an SME with around 70 employees, which is a supplier of hydraulic and pneumatic products to the UK rail industry. Tidyco is key supplier of Tube train parts to TfL, with TfL’s million-pound contracts making it a key driver in the business’ success. This is a prime example of how TfL’s supply chain stretches around the country, creating jobs, capacity and certainty for both small and large manufacturing businesses.

TfL contracts support tens of thousands of jobs outside London and contribute around £7bn to the UK economy, with 55 pence of every pound spent on London Underground investment going outside of London – indicating how essential sustained funding for TfL is to the wider UK economy. 

London’s transport network has seen exciting additions and modernisation this year with both the opening of the Elizabeth line and the re-opening of the Bank branch of the Northern line, and the new southbound Northern line platform and concourse at Bank station.

The Mayor has ambitions to rapidly expand the order book to suppliers across the country, such as ordering new trains and parts that will be built outside of London for Crossrail 2 and the Bakerloo line extension, and new trains for the Piccadilly, Central and Bakerloo lines, which would create more highly skilled manufacturing jobs. But to continue projects like this, TfL needs a sustainable long-term capital funding deal from government.

Before the Coronavirus pandemic, TfL significantly improved its financial resilience. Due to TfL's reliance on passenger fares for the majority of its income, the effect of the pandemic on its finances has been devastating, requiring Government support to keep public transport in London operating.

TfL's current short-term funding deal expires on the 24th of June. Without a long-term capital deal by this date, TfL will be forced to start work on enacting its managed decline scenario. That would mean an additional 80 bus routes cut (an overall 18 per cent reduction), and a nine per cent reduction in tube services, equivalent to closing an entire line.

In Derby today, Seb highlighted that TfL contracts provide ongoing work for this important East Midlands manufacturing base, and that funding uncertainty puts jobs and future contracts at risk.

The Deputy Mayor for Transport, Seb Dance, said: “Visiting the factory where the state-of-the-art Elizabeth line trains were built, and local companies where TfL contracts create hundreds of jobs, I’ve seen first-hand how strong London’s relationship with our regional suppliers is. This highlights once again how investment in TfL is vital to jobs and a UK wide recovery.

“Major infrastructure projects such as the new Elizabeth line are not just for London – they play an important part in powering the national recovery from the pandemic. Crossrail has already supported tens of thousands of jobs across the country, with more than 60 per cent of contracts for the project awarded to firms outside London and it is estimated that it will add up to £42 billion to the UK economy. This is levelling up in action – an investment that supports employment, growth and supply chains nationwide.

“This is why I am asking the Government to urgently work with us to agree a fair, long-term funding deal that will protect London’s transport network and its economic wellbeing, and that of the whole country.”

Alstom’s Derby Site Managing Director, Mike Hulme said: “It’s a pleasure to host Deputy Mayor for Transport, Seb Dance and his Transport for London (TfL) colleagues at our Derby facility today - the UK’s largest train factory and the only site where it is possible to design, build and test trains for UK and overseas markets. TfL is one of Alstom’s most important customers globally and we are proud to have played our part in delivery of London’s iconic Elizabeth line.”

Tidyco Managing Director, James Tidy: “We are honoured that Seb Dance has taken the time to come and see us in Derby. TfL is a key customer of ours and his visit really highlights the importance of the role, which SMEs play in the smooth operations of the organisation. It is humbling to know that our contributions to TfL and the wider UK rail industry helps them to transport billions of passengers safely and reliably each year.”

Amanda Solloway MP for Derby North said: “I am delighted that the Deputy Mayor for Transport, Seb Dance, and his colleagues from Transport for London, have seen first-hand the remarkable engineering expertise in our city. Both perfect examples of the city’s manufacturing prowess, Tidyco has been supporting the rail industry for more than 45 years while Alstom is busy fulfilling a £2bn Government order.

“Derby has a strong and proud history within the railway industry and continues to play a central role within it in the 21st century. It is for this reason that I have been actively supporting the campaign to make Derby the home of the new Great British Railways - we sit in the heart of the UK rail network and will become one of the best-connected cities in the country.

“This visit has highlighted how investment in London can benefit our county, creating and sustaining highly skilled manufacturing jobs. It has also shown Transport for London how experienced and efficient our workforce is here in Derby.”