London got a shot in the arm today after the Mayor of London Sadiq Khan confirmed his transport improvement plan had got the green light — but “difficult decisions” had to be made.
Transport for London’s (TfL) proposals are now “on track to be financially sustainable” after the government announced a fresh boost.
In a statement today, TfL said 75 per cent of its capital investment programme would be self-funding but required additional government help.
Last week, Transport for London (TfL) struck a deal with the government for £250m funding after the network’s future capital arrangements were left unclear in last month’s Autumn Statement.
The agreement comes as London’s transport network approaches pre-pandemic traffic levels, following a consistently chequered recovery after its coffers were emptied during the lockdown years.
Before the cash boost, Transport for London reportedly faced a funding “cliff edge”. Experts warned that the £250m injection wouldn’t be enough, however, to solve all of Transport for London’s problems.
It confirmed jobs were not part of the “difficult decisions” made by TfL, and it related more to pushing back projects.
The draft plan was published on 11 December, but questions were asked because of a lack of government funding. The £250m stumped up by the central government was however half of what TfL needed, so it “had to take difficult decisions that have longer-term financial impacts”, in order to get it confirmed.
This comes after members of the RMT Union today announced a series of damaging strikes in early January, relating to an ongoing pay dispute.
TfL said the payments for a contract with Siemens Mobility, who are delivering the new Piccadilly line trains, had been rejigged, while greater ridership on the tube means it will have a better surplus.
It added that as a by-product, more of the Piccadilly Line trains will be made in the UK at a factory in Yorkshire, where Siemens is investing £200m and creating more than 700 jobs.
TfL “continues to assume that 50 per cent of funding” for major projects from 2025/26 will come from the central government, it said.
Transport for London also outlined a number of projects it is working on to improve the network, including improving capacity through better signalling, state-of-the-art trains, and laying the groundwork for other lines to get new trains in the near future, including Bakerloo.
It expects the Silvertown tunnel to be completed, and it would deliver a new bus action plan supporting 25,000km of new bus lanes. Sadiq Khan’s new ‘superloop’ scheme would be rolled out.
There are also major plans to improve its green credentials, including decarbonisation, with £150m earmarked for investment into “safe and active travel schemes”.
Lastly, it said its property arm Places for London has identified a capacity for around 20,000 new homes while investing in other properties to make them greener.
According to the network, investment in TfL’s network will benefit 100,000 jobs in the capital and across the UK.
Mayor of London Sadiq Khan said: “These past few years have been the most challenging in TfL’s history, but following a programme of work to rebuild ridership, increase income and reduce costs, I’m pleased that TfL is now on track to be financially sustainable for the first time in its history in terms of its day-to-day operations.”
The mayor added: “As the Government has only provided half of the capital funding that TfL needs, TfL has had to make difficult decisions about their business plan to ensure they can continue to make vital upgrades to London’s transport network.
“That’s why it is still vitally important that we agree a sustainable long-term funding settlement from the Government that allows us to plan and invest for the infrastructure London will need over the coming decades. Expanding our transport network and supporting jobs and economic growth in London has real and sizeable benefits for the economy of the whole UK.”
City Hall Conservatives transport spokesman Keith Prince welcomed the confirmation of funding, saying: “After receiving a £250m funding injection from Government earlier this week, I’m delighted TfL has finally signed off next year’s business plan.
“I’m particularly pleased TfL will manage to deliver all of its planned improvements to the network next year despite crying poor just a few days ago.”
Prince continued: “The Government has provided TfL with more than £6 billion of taxpayers money since 2020 to keep buses, trains and the tube moving in London. Its chairman Sadiq Khan seems incapable of managing TfL’s finances, running cap in hand to the Government seeking bailouts at every opportunity. Londoners have had enough of being treated like walking cash machines.”
There will be a London Mayoral election in 2025, which Sadiq Khan is currently odds on to win a historic third term. His main challenger is Tory hopeful, Susan Hall.
