The Government says £250 million of funding will allow Transport for London will allow it to continue its investment programme including new trains for the Piccadilly Line.
However, while London Transport Commissioner Andy Lord welcomed the decision, he warned that the body would have to reassess its recent draft business plan and ‘address the impact of the continuing shortfall in funding’. He added that this work is under way.
In a decision letter to London Mayor Sadiq Khan on the funding settlement, Transport Secretary Mark Harper said the Government expects TfL to be able to cover operating costs, servicing and repaying of debt and capital enhancements and renewals by the end of March 2024. However, TfL would not be expected to solely fund major capital enhancements and renewals such as replacement of rolling stock and signalling renewals.
The decision letter says the capital settlement is intended to enable TfL to continue to deliver current and committed major capital projects including phase 1 of the Piccadilly Line upgrade.
TfL will also continue work to reform its pension scheme.