Transport for London (TfL) has reached a long-term funding agreement from central Government with around £1.2 billion committed until the end of March 2024. The deal was agreed at a TfL board meeting on 30 August.
It follows months of negotiations and short-term funding deals to ensure TfL can continue to operate, although since early August when the last short-term deal expired, TfL has funded itself from reserves.
Under the terms of the deal, the Government will take revenue risk and if necessary, provide revenue support should passenger numbers and revenues not recover at the rate predicted.
Fears of a process of ‘managed decline’ in the absence of a deal could now be allayed, and it means TfL can complete projects such as the Four Lines Modernisation programme, Bank station upgrade, introduction of new trains for the Piccadilly Line and Docklands Light Railway and full through services on the Elizabeth Line. Capital investment of £3.6 billion can now take place. This will be split £1.719 billion in 2022/23 and £1.831 billion in 2023/24 on capital renewals and enhancements.
Funding shortfall
Although the Government’s funding deal provides long-term certainty for TfL, the body says it leaves a funding gap of around £740 milli…
