Emergency funding has been extended for a third time for Transport for London (TfL).
An extraordinary funding and financing support package arrangement, announced in June, was provided to help TfL because of low passenger numbers and revenue forecasts due to the pandemic.
The funding first expired on 10 December, then it was extended until 17 December. It got another extension until 4 February as negotiations continued.
Now the funding has been set until 18 February.
In a written statement to Parliament, Transport Secretary Grant Shapps said: “Following my statement to the House on 5 January 2022, I am updating the House on an interim extension of the current Transport for London (TfL) funding settlement that was due to expire on 4 February 2022 by 2 weeks to 18 February 2022. This has been agreed by the Mayor of London.
“Since the start of the pandemic, we have supported the transport network in London with over £4.5 billion funding through extraordinary funding settlements for TfL.
“We have recognised the reliance of London’s transport network on fare revenue and government continues our commitment to mitigating loss of fare revenue because of the pandemic.
“Government is committed to supporting London’s transport network as we have since the start of the pandemic and is in discussions with TfL on a fourth funding settlement.
“This short extension will enable us to finalise the terms of a robust settlement for this period, ensuring TfL and the Mayor take steps to move towards financial sustainability.
“In this extension, government will continue to ensure the provisions of the existing agreement are delivered while providing continued certainty to Londoners as we move out of Plan B restrictions.
“Support to TfL has always been on the condition that TfL reaches financial sustainability as soon as possible and with a target date of April 2023, and government continues to press the Mayor of London and TfL to take the decisions needed to put the organisation on a sustainable footing.
“I will update the House at my earliest opportunity on the details of the fourth funding settlement.”
A Transport for London (TfL) spokesperson said: “We continue to discuss our funding requirements with the Government. There is no UK recovery from the pandemic without a London recovery and there is no London recovery without a properly funded transport network in the capital. It is essential London receives the sustained long-term Government funding that is vital for the coming years if a period of ‘managed decline’ of London’s transport network is to be avoided.
“We have today (4 February) agreed with the Government that our existing funding agreement will be extended until 18 February 2022 so that these discussions can be concluded. Working together, we must achieve a longer term capital funding settlement for at least three years, that ensures London’s transport network can remain reliable and efficient, can support the jobs and new homes that rely upon it and can support the economic recovery of the capital and the country as a whole. We hope these discussions can be concluded successfully soon. “
Darren Caplan, chief executive at the Railway Industry Association (RIA), said: “It is frustrating to see yet another short-term extension announced today, which is really a sticking plaster solution rather than a long-term programme to invest in London’s transport system.
“Hundreds of businesses across the UK, including those which maintain and upgrade the capital’s rail and tube network, will still not be able to plan and invest in skills and capabilities due to the uncertainty over future funding and the status of key railway projects. And lack of certainty and visibility of projects means a poorer deal for the taxpayer too.
“Just this week TfL confirmed that without a long-term deal, several vital upgrades will be paused or cancelled and that they face a funding gap in the coming years. All this at a time when passengers are clearly returning to the network to return to workplaces, visit friends and family, and enjoy hospitality. “We hope that a multi-year deal can be agreed as soon as possible between the Government and Mayor of London. This will ensure London’s railway and tube systems can continue to provide cost-effective, sustainable transport for millions of people and drive economic growth both in the capital and around the country.”
