Following my statement to the House on 27 June, Official Report, 5WS, I am updating the House on an extension of the current Transport for London (TfL) funding settlement that was due to expire on 13 July to 28 July. 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 £5 billion funding through extraordinary funding settlements for Transport for London. We have recognised the reliance of London’s transport network on fare revenue, and the Government continue our commitment to mitigating loss of fare revenue because of the pandemic.
This extension to the current funding settlement is necessary due to the unsatisfactory progress made by TfL on meeting agreed deadlines, including relating to pensions. Resolving these issues is an integral part of setting TfL on the path to financial sustainability, and the Government stand ready to engage constructively to reach a resolution. This extension ensures that they receive due attention.
The Government are committed to supporting London’s transport network as we have since the start of the pandemic and are in discussions with TfL on a longer term settlement. By rolling over the provisions of the existing agreement, the extension provides continued support to Transport for London and certainty to Londoners while we work with Transport for London on its funding needs.
This extraordinary support to Transport for London has always been on the condition that Transport for London reaches financial sustainability as soon as possible and with a target date of April 2023 and the Government continue to press the Mayor of London and Transport for London 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 any longer-term funding settlement.