Fares income

Meeting: 
MQT on 2015-07-15
Session date: 
July 15, 2015
Reference: 
2015/2413
Question By: 
Valerie Shawcross
Organisation: 
Labour Group
Asked Of: 
The Mayor
Category: 

Question

Fares income is £50m below Budget over 2014/15. How is the Mayor intending to deal with this hole in the finances?

Answer

Answer for Fares income

Answer for Fares income

Answered By: 
The Mayor

TfL's 2015/16 Budget shows that their long-term financial position remains balanced.

Fares income in 2014/15 was £50m lower than Budget. This was due to a combination of industrial action (both the Tube and the bus network), lower than budgeted fares increases (due to lower inflation and the real terms fares freeze in January 2015) and slower than forecast demand growth.

TfL re-forecasts its long-term finances every quarter to reflect new inflation assumptions, fares policy, economic and population changes, as well as actual and anticipated changes to costs, savings and project delivery. This includes addressing any variance to the Budget. As forecasts are updated, TfL ensures that the plan remains financially balanced over the long term. TfL seeks to forecast as accurately as possible; fares income over or under budget is a reason to be cautious and plan properly for the long term, rather than make a short term reactionary decision.