Transport for London emergency funding settlement extended by UK government
As longer term discussions continue, the UK government has extended Transport for London’s emergency funding settlement for the fifth time in 2022, from 13 July to 28 July 2022.
On 13 July 2022, Transport for London (TfL) issued the following update on government funding: “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 (13 July 2022) agreed with the government that our existing funding agreement will be extended until 28 July 2022 so that these discussions can be continued. Whilst in receipt of government support, we have worked hard to progress all conditions placed on TfL, and continue to maintain that we have met them all. Working together, we must achieve a longer term capital funding settlement that ensures that 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 that these discussions can be concluded successfully soon.”
This most recent extension follows three temporary short-term extensions that were made in February 2022, and a fourth in June 2022 – marking this as the fifth extension in the space of six months.
In a written statement to Parliament, the UK’s Transport Secretary, Grant Shapps, said: “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 longer-term settlement. By rolling over the provisions of the existing agreement, the extension provides continued support to TfL and certainty to Londoners while we work with TfL on their funding needs.”
In response to the extension, the Mayor of London, Sadiq Khan, said: “Today, the government has given TfL another short-term extension – of just a few weeks – to the current emergency funding deal. This short extension is only necessary because the government has still not put forward any proposals for discussion on the long-term funding London needs. I am growing increasingly concerned that we can’t wait any longer without serious consequences.
“This is a £10 billion transport authority that is crucial to supporting jobs and economic growth. Without a long-term funding deal, TfL will have to prepare to make further painful cuts to London’s transport network – its ‘managed decline’ scenario.
“The devastating impact of the pandemic is the only reason that TfL needs financial support. It is now imperative that the government urgently works with me to agree a fair, long-term funding deal that will protect London’s transport network – not just for the sake of the capital, but the whole country.”
Find out more about the previous extensions here: