Government Bails Out TfL with Massive £1.7bn Lifeline
The government has slapped down a huge £1.7 billion funding package to keep Transport for London (TfL) afloat until March 2021. This emergency bailout is designed to protect London’s transport services and get the city moving again as coronavirus restrictions tighten.
Cash Injections to Keep London Moving Amid COVID-19
Under the deal, the government will cover all fare revenue TfL has lost due to the pandemic. This ensures vital workers like NHS staff can keep travelling as new national lockdown measures kick in. The package also guarantees free travel concessions at standard English levels, including school travel for eligible children, all funded by UK taxpayers.
Mayor Slashes Costs and Plans Fare Rise
To balance the books, the Mayor has pledged £160 million in TfL savings over six months and announced a fare hike of RPI plus 1%. If he wants to maintain extra concessions above the national standard, he’ll fund them himself, possibly by keeping the central London congestion charge unchanged and hiking the TfL part of the council tax. The Mayor’s final decision is due by January 2021 alongside a long-term financial plan for TfL.
No Congestion Charge Expansion & Pensioners’ Passes Safe
Both the government and the Mayor have ruled out expanding the congestion charge zone to inner London. Pensioners’ Freedom Passes remain untouched as they’re funded separately.
Government Oversight and Future Control
Two government representatives will stay on TfL’s board, while a new oversight group chaired by the government will keep a close eye on the deal’s rollout and TfL’s financial health.
Transport Secretary Grant Shapps: “This deal shows our commitment to supporting London and its vital transport network. Just like with national rail, we’re topping up fare income lost to COVID-19 so essential travel can continue. The arrangement is fair to taxpayers nationwide, with the Mayor promising no extra London-only benefits funded by others.
As we move beyond the pandemic, I’m keen to work with London’s leaders to build a long-term settlement—giving London more control over taxes so it can fund more of its transport. This package is the first step towards a sustainable future for TfL once the pandemic’s course is clearer.”
