TfL Budget

Meeting: 
MQT on 2002-05-22
Session date: 
May 22, 2002
Reference: 
2002/0203
Question By: 
John Biggs
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

While the final outturn may be an improvement on this, was the predicted £160m underspend in the TfL budget a good outturn for London? And given that the Chair of many other public bodies would be expected to resign on such a result, do you still have confidence in the Chairman of TfL?

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Answer

Answer for TfL Budget

Answer for TfL Budget

Answered By: 
The Mayor

TfL's performance in 2001/2002 was a good out-turn for London. This year has seen the delivery of one of the biggest recent public service success stories in the country. A raft of fares cuts and service improvements has lead to 6% increase in bus usage - the highest since 1975. Over 1,100 new buses entered service, and the bus miles lost through staff shortages were halved - all in that one year.

TfL underspent its £720m government grant by £20m in 2001/2002. However, the original budget also assumed borrowing of £88m, making a total of £830m against a net final expenditure of £700m, capital and revenue combined.

Some of the major causes of underspend in 2001/2002 have been due to factors outside TfL's direct control. Including the timing of payments on the DLR City Airport extension, where delay by the government, in its various guises on this deal, slipped the expenditure of £25m from 2001/2002 into the subsequent year, and the boroughs underspent their grants by £12m. These were carried over into 2002/2003.

Over-programming was an explicit feature of TfL's 2001/2002 budget, and this was made clear in the budget papers and reflected in the nature of the newly formed organisation. Recognition should also be given to actions taken by TfL management to achieve efficiencies and other savings, which have also relieved the need for borrowing and placed the organisation on a more sound financial footing to deliver for London. .