Transport For London Funding Agreement

Transport For London Funding Agreement

As part of the agreement, London will also need to find additional funds in the coming years. Decisions on how to find these additional funds are still being taken by the mayor, but some of the options he and the government have agreed to include a modest increase in municipal tax until consultation and maintenance of the temporary changes to The Central London Congestion Tax introduced in June 2020, subject to consultation. Transport Minister Grant Shapps said: “This agreement is proof of our commitment to supporting London and the transport network on which it depends. Just as we have done for national rail operators, we will compile the transport revenue that TfL loses because of Covid. TfL stated that “discussions are continuing on longer-term sustainable funding” and found that the increase in congestion charges agreed in June under the first Covid-related bailout and extended hours would continue for the time being. “Getting this agreement with the government allows us to help London in the next phase of the pandemic. We will continue to work with the mayor and the government on our longer-term funding needs. As always, our employees work tirelessly to serve the people and businesses of London; support the city`s economy and offer our customers excellent, safe and reliable service every day. The actual number will vary depending on passenger revenues, but this will allow TfL to continue operating in London for the remainder of the year. Discussions are ongoing on longer-term sustainable financing opportunities. The Mayor of London today reached an 11-hour agreement with the government for a funding agreement to operate The Capital`s Metro, Bus and Other Services in the capital until March 2021. “However, this is a resting agreement and more funds are needed to see London`s public transport through the full effects of the income-devastating pandemic.” Unite has already received assurances that the recent financing agreement will not reduce the terms and conditions of TfL employees or reduce their pensions. Such assurances are necessary in the long term.

The sources of funding for London`s transport infrastructure are increasingly uncertain. The impact of COVID-19 has significantly reduced TfL`s revenue due to the decrease in passenger numbers. The amount of business rates available to the mayor is also expected to decrease over the next few years due to LA COVID-19. Before COVID-19, the London Country principle was a challenge against other against financial winds, including the total abolition of a central government grant in 2015/16. Covid-19 has made London`s finances even more difficult, which is why we must continue to work with the government on a reasonable funding system. The union, which represents thousands of workers employed in all of London`s public transport, has cautiously welcomed the funding agreement of London Mayor Sadiq Khan, which will run public transport in the capital. Due to the high uncertainty surrounding the number of passengers, the financial package can be modified based on actual passenger revenues. TfL estimates that it will provide approximately 1.8 billion pounds of funding.

TfL has committed to contribute some GBP 160 million to the projected funding shortfall, either in the form of additional revenue or savings through a mix of less capital and operating expenses combined with stronger financial control measures. “With this public funding, Londoners who make major trips will continue to be able to use TfL tubes, buses and other services. At the same time, the agreement is fair to taxpayers across the country. The mayor has promised that national taxpayers will not pay for benefits for Londoners they do not receive elsewhere in the country. “With this agreed funding agreement, it is essential that the focus is now on the safety of all TfL workers and passengers during this second wave of pandemic, while London is on the move.