TfL’s current business plan called for an annual above inflation fares increase of at least 1% although additional government funding allowed Mayor Boris Johnson to limit next year’s increases to the rate to inflation.
However managers are now asking board members to sanction a return to the yearly above inflation increase from 2016 to financial year 2020/21.
If agreed this would mean Tube passengers paying an additional £900m – up from £2,413m to £3,371m – while bus passengers would see their fares burden grow from £1,558m in 2014/15 to £2,062m in 2020/21.
The overall fares yield, including TfL’s rail operations which will include Crossrail from 2018, will grow from £4,297m in the current year to £6,769m by 2020/21.
During the same time TfL’s other operating income, including money raised by the congestion charge, will increase from £680m to £846m.
TfL insists the increased fare revenue will be used to fund network improvements and upgrades, including a fleet of new Tube trains expected to cost up to £2.5bn and hundreds of the Mayor’s New Routemaster buses.
In recent months the Mayor and TfL have announced a series of expensive schemes which could limit the next Mayor’s ability to halt the fares increases when they take office in 2016.
