Transport for London’s 2023/24 budget shows it is on track to deliver an operating surplus of around £79 million, with revenues covering the costs of the network.
Revenue is predicted to be £9.1 billion, enough to cover £7.9 billion operating costs, £745 million on capital renewals and £417 million in net interest costs. The operating surplus will be reinvested into enhancements as part of its £2 billion capital programme, with any government funding allocated to fund capital investments.
Since 2016, TfL says it has shaved £1.1 billion from annual operating costs and is currently working to deliver a further £600 million in savings. It adds that ridership on its bus, Tube and rail network continues to grow, with ridership at weekends at or exceeding pre-pandemic levels. The Elizabeth Line, which opened in 2022, is exceeding predicted passenger numbers with around 600,000 journeys every day on the full route.
However, a note of caution is sounded, with future passenger numbers still uncertain. TfL’s latest assessment assumes that by the end of 2023/24 ridership will have grown by a further 7%. It also assumes that the current funding agreement with Government remains in place until April 2024.