I am updating the House on an extension of the current Transport for London (TfL) financial settlement, which was supposed to expire on July 13 but has now been extended to July 28.
This follows my statement to the House on June 27. The Mayor of London has approved this.
Through special financial arrangements for TfL, we have provided the London transportation system with almost £5 billion in funding since the pandemic’s inception.
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 to TfL’s dismal performance in meeting deadlines, notably those related to pensions, the current financing arrangement must be extended.
Setting TfL on the path to financial sustainability requires resolving these problems, and the government is prepared to work constructively to do so.
They will receive the proper attention thanks to this extension.
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 work with TfL on their funding requirements, the extension offers ongoing support to TfL and assurance to Londoners by carrying over the terms of the existing arrangement.
The government has consistently pressed the Mayor of London and TfL to make the decisions necessary to put the organization on a sustainable footing, and this extraordinary support for TfL has always been contingent upon TfL achieving financial sustainability as soon as possible, with a target date of April 2023.
Whenever I have a chance, I will inform the House of the specifics of any longer-term funding agreement.