TfL to receive £250m government support in 2024

London’s public transport network will receive a £250 million investment from the Government next year.

Transport for London (TfL) said it will have a “shortfall in funding” after the Department for Transport (DfT) announced the level of its support.

The department said the package will be used by TfL for projects such as providing new Tube trains for the Piccadilly line.

TfL, which had requested £500 million a year and a longer-term deal, is not allowed to spend the money on its day-to-day operations.

The shortfall creates doubts over TfL’s ability to go ahead with the proposed Bakerloo line upgrade and extension.

Transport Secretary Mark Harper accused the Greater London Authority (GLA) of “poor governance and decision-making” under Labour mayor Sadiq Khan.

He said: “This Conservative Government is providing London’s transport system with a £250 million boost following on from billions of support in recent years.

“The Government has expressed ongoing concern about the management of TfL by this Mayor, and it is disappointing that London taxpayers are having to foot the bill for the GLA’s poor governance and decision-making.

“Our capital city deserves a mayor who can balance the books without taxing the poorest motorists, or relying on taxpayers to prop them up.

“That’s why I’ll be backing Susan Hall to be the next Conservative Mayor of London at the election in May.”

Mr Khan said: “I’m relieved that we have agreed this one-year capital funding deal with DfT, which will enable us to make vital upgrades to our transport network, including upgrades to the Piccadilly line.

“This one-year funding will also mean we are protecting and creating jobs around the country, including in Goole where many of these state-of-the-art trains are being made.

“However, it’s still vitally important that we agree a decent long-term funding settlement from the Government that allows us to plan and invest for the infrastructure London will need over the coming decades.

“Expanding our transport network and supporting jobs and economic growth in London has real and sizeable benefits for the economy of the whole UK.”

Rail minister Huw Merriman said: “We’re investing in transport across the country, and today’s agreement will have a tangible, positive impact not just for people travelling in and around the capital but also the millions who visit every year.

“It is fair for Londoners and taxpayers, underpinning projects that will support hundreds of skilled manufacturing jobs in our vital rail sector.”

London’s Transport Commissioner, Andy Lord, said: “Through a huge effort to reduce costs and rebuild our ridership and revenue following the pandemic, TfL is now on track to be financially sustainable in terms of its day-to-day operations.

“We are also able to cover the cost of the majority of our capital investment.

“We, alongside London’s business stakeholders and others, have consistently made the case that additional Government support for capital investment in transport is needed if we are to be able to continue to deliver vital improvements to London’s transport network, unlock new homes and support growth across London and the UK.

“It is good news that we have now reached an agreement with the Government on the capital support that they will provide over the next year, and we are grateful for the support.

“However, we will now need to reassess our recent draft business plan and address the impact of the continuing shortfall in funding. That work is under way so that we can confirm as soon as possible what we will deliver for London.”

Ben Curtis, from charity Campaign for Better Transport, said: “Whilst this settlement will ensure the wheels keep turning, it is not helpful to the general economy of the country to keep London on such a short leash.”

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