Transport for London Act 2016

Meeting: 
MQT on 2017-01-18
Session date: 
January 18, 2017
Reference: 
2017/0180
Question By: 
Leonie Cooper
Organisation: 
Labour Group
Asked Of: 
The Mayor
Category: 

Question

What are Transport for London's Plans as a result of the passing of the Transport for London Act 2016?

Answer

Answer for Transport for London Act 2016

Answer for Transport for London Act 2016

Answered By: 
The Mayor

The Transport for London Act 2016 (the Act) gives TfL a range of additional powers to manage its finances more flexibly and efficiently as it continues to transform its business and make significant cost savings that will be reinvested in its services. 

Where TfL may acquire companies with existing secured debt, it could realise significant savings by using the charging powers of TfL subsidiaries in the Act to avoid the need to immediately restructure that debt (potentially at significant cost) on acquisition.  At this stage, there are no plans to acquire new companies.

Should TfL consider it appropriate, and with my consent, a TfL subsidiary will be able to grant charges over its non-operational property.  TfL is currently working with its partners on the Property Partnership Framework and will consider the appropriate use of this power as part of the property development programme.

The Act also gives TfL the flexibility to consider using Limited Liability Partnerships (LLPs) for joint ventures with the private sector which could deliver significant benefits.  TfL is are currently updating its Property Partnership documentation to allow its partners the opportunity to include LLPs in their bids, which is expected to encourage more competitive bids on its sites being offered for development. 

TfL has additional powers under the Act through its subsidiaries to hedge against variations in prices to which it is exposed in contracts with third parties where oil, electricity or commodity is used by the contractor, not TfL, e.g. diesel exposure in bus contracts; energy exposure in rail concessions.  TfL is currently exploring opportunities to use this power in its contract negotiations with third parties.

The recently published TfL Business Plan sets out my vision for an affordable and modern transport system and how it will be delivered through greater efficiency and a new approach to raising income from other sources.  These plans will be supported by the powers in the Act.