I am updating the House on a brief extension of the present Transport for London (TfL) financial settlement, which was planned to expire on June 24, 2022, by 19 days to July 13. This follows my speech to the House on February 25, 2022.
The London mayor has approved of this.
Since the outbreak of the epidemic, we have provided approximately £5 billion in financing to Transport for London through extraordinary funding arrangements.
We are aware of how heavily the transportation system in London depends on fare income, and the government remains committed to minimizing the loss of fare income caused by the pandemic.
Due in part to TfL’s insufficient progress on its requirements, particularly pensions, this prolongation to the present funding settlement is required. Setting TfL on the path to financial sustainability requires resolving these problems, and the government is prepared to work constructively to do so.
This extension makes sure they get the attention they deserve and gives both parties time to think about a longer-term capital settlement.
The government is in talks with TfL about a longer-term solution and is dedicated to continuing to assist London’s transportation system as we have done since the pandemic began.
While we engage with TfL on its emergency finance requirements, the extension offers sustained support to TfL and assurance to Londoners by carrying over the terms of the existing agreement.
The government has always pushed the Mayor of London and TfL to make the decisions necessary to put the organization on a sustainable foundation. Support for TfL has always been contingent upon TfL achieving financial sustainability as soon as feasible, with a goal date of April 2023.
Any longer-term capital settlement’s specifics will be disclosed to the House as soon as possible.