Following my statement to the House on 13 December, I am updating the House on a seven-week extension of the current Transport for London funding settlement that was due to expire on 17 December 2021. The Mayor of London and I have agreed to extend the current settlement to 4 February 2022.
We have thus far supported London with over £4 billion funding and these extraordinary funding settlements for Transport for London recognise the reliance of London’s transport network on fare revenue, and Government’s commitment now and in the future to mitigating loss of fare revenue because of the pandemic. This extension has provided certainty to Transport for London and to Londoners over the Christmas and New Year period while also allowing Government and Transport for London to monitor and adapt to the impact of the omicron variant of the virus.
The extended settlement will continue to support the capital and its transport network—on the same terms as previously agreed—until 4 February, when Government expect there to be a new funding settlement in place. The extension letter also includes amendments to the current settlement relating to fares and the Hammersmith bridge ferry.
On 15 December, the Department for Transport received further information and specificity from the Mayor of London relating to his proposals, set out in his letter of 8 December, to raise new income of between £0.5 billion and £1 billion in line with the commitment agreed under the June 2021 emergency settlement. The original deadline for this information was 12 November. Following receipt of the Mayor of London’s 15 December letter, the Government are satisfied that at this stage he has provided sufficient information on his proposals. We have therefore agreed to extend the current Transport for London Settlement from 17 December 2021 to 4 February 2022 so that Government are able to fully consider these proposals.
The Government are committed to supporting London and the transport network on which it depends, while balancing that with supporting the national transport network as a whole.