• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

MayorWatch

London News and Comment

  • NEWS
  • Twitter

Mayor rejects Goverment’s ‘unacceptable’ conditions for TfL funding

October 21, 2020 - Martin Hoscik@MayorWatch

Sadiq Khan has rejected Government demands that he and Transport for London extend the Congestion Charge zone to the North and South circular roads and put up fares above inflation in return for further funding.

TfL’s revenues have been hit hard by plummeting passenger numbers in the wake of the Covid pandemic, forcing it to seek a £1.6bn emergency funding package from ministers earlier this year.

In return for that help, ministers imposed a number of conditions including fares rises of RPI+1% across all TfL services and the imposition of two government representatives to the TfL board. The deal also called for the suspension of free travel for students, although this has yet to be implemented. 

The pandemic worsened an already bad situation for TfL which was having to cut spending in several areas as a result of lost commercial and fares revenue arising from the delayed opening of Crossrail.

Opponents claim the Mayor’s 4 year fares freeze had also placed pressure on the organisation, although City Hall insists the primary pre-pandemic squeeze on its finances was a 2015 Conservative government decision to axe TfL’s operating grant.

It also says a series of reforms, including the axing of hundreds of managers, had produced a leaner and more cost-efficient organisation and were on course to put the agency on a firm footing. 

Mr Khan has called for a further £5.7bn in government funding, but today rejected conditions attached to an offer of help.

In addition to increasing the level of fares rises to more than the previously agreed RPI+1% and expanding the congestion charge area, ministers have suggested introducing a new precept on Londoners’ council tax to help fund TfL and proposed axing the over 60s Oyster card. 

The card is separate to the Freedom Pass which is funded by local councils and isn’t affected by the proposals. 

Rejecting the conditions, Mr Khan said: “I simply cannot accept this Government plan, which would hit Londoners with a triple whammy of higher costs at a time when so many people are already facing hardship.

“It is clear that difficult choices lie ahead to plug the huge gap the pandemic left in TfL’s finances. I have been ready to talk with Government about how the necessary funds can be raised – but a proposal which singles out Londoners for punishment is completely unacceptable, as well as making no economic sense.

“I urge Ministers to come back to the table with a revised proposal which does not punish Londoners for doing the right thing to tackle Covid-19 – and to publish their review into TfL’s finances in full. I remain ready to talk.”

According to the Financial Times, ministers have threatened to take direct control of TfL unless the mayor agrees terms.

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on Tumblr (Opens in new window)
  • Click to share on Pinterest (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Reddit (Opens in new window)
  • Click to print (Opens in new window)
  • Click to email this to a friend (Opens in new window)

RECENT UPDATES

852 new homes to be built in Acton by Transport for London

HGV operators in London urged to apply for a Direct Vision Standard permit

TfL proposes bus and tube cuts and annual fares increases to achieve long-term financial sustainability

London’s entire bus fleet now meets ULEZ emissions standards




Popular

1,700 extra Santander Cycles are coming to London’s streets

TfL confirms changes to Older Person’s Freedom Pass and 60+ Oyster card hours

TfL fares to rise in return for £1.6bn Government rescue package

Election for Mayor of London and London Assembly postponed until 2021

FEATURED

City Hall to move to Docklands as Mayor seeks to raise £55m for frontline services

‘Concern’ over TfL’s ability to deliver major projects in wake of Crossrail cost overruns

City Hall halts London Overground ticket office closures but many will still see opening hours reduced

Transport for London confirms bus cuts will go ahead despite passenger opposition

GOT A STORY?

As the original London news and scrutiny site we've been casting an eye over the capital's public services and politicians since 1999.

 

Many of our top stories started with a tip-off from a reader - if you've got something you'd like us to cover get in touch and we'll do the rest.

Stay In Touch

  • E-mail
  • RSS
  • Twitter

Copyright © 2021 MayorWatch Publications Limited · MayorWatch is Registered Trademark · All Rights Reserved · Contact Us · Terms of Use · Privacy Policy

MayorWatch Publications Limited · 20-22 Wenlock Road · London N1 7GU · Company Number 6291816

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.