TfL finances

Meeting: 
MQT on 2018-12-20
Session date: 
December 20, 2018
Reference: 
2018/5414
Question By: 
Gareth Bacon
Organisation: 
GLA Conservatives
Asked Of: 
The Mayor

Question

Given your recent decision to freeze TfL fares for the third consecutive year, should the Department for Transport and Londoners assume that TfL’s finances are healthy and TfL has no need of additional income?

Answers

Answer for TfL finances

Answer for TfL finances

Answered By: 
The Mayor

Officers are drafting a response.

TfL finances

TfL finances

Answered By: 
The Mayor

My TfL fares freeze continues to help people by ensuring travelling by bus or tram ticket in London next year costs not a penny more than it did in 2016. By 2020, my TfL fares freeze will have saved the average London household around £200. This is in addition to my ‘Hopper’ bus fare that has now saved people money on over 240 million bus journeys since it launched in September 2016. In contrast, National rail fares, set by the private rail companies, have risen by around 8.8% since 2016.

TfL is facing a number of external financial challenges including a subdued national economy that has slowed down ridership, adapting to the loss of an operating grant from central Government, which means an average £700m per year reduction in funding, and the delay to the opening of the Elizabeth line announced by Crossrail Ltd. Despite these factors, thanks to tight financial management that I have insisted on, TfL is driving down costs with this year’s operating deficit on track to come in more than £200m better than budgeted for during the current financial year. This means that TfL continues to invest and improve in its network and operations, with a robust financial plan.

Nonetheless, if we are to continue to meet the needs of London we will need long-term, steady and sustained Government investment in the capital’s transport network and I will be making the case for this throughout 2019.