From the London Mayor Sadiq Khan's Office
The Mayor of London has today reached an eleventh-hour agreement with
the Government on a funding deal to keep tube, bus and other TfL
services in the capital running until March 2021.
Sadiq Khan said the deal was "not ideal” but added: "We fought hard
against this Government which is so determined to punish our city for
doing the right thing to tackle Covid-19. The only reason TfL needs
government support is because its fares income has almost dried up since
March.”
The Mayor has succeeded in killing off the very worst Government
proposals, which were confirmed in writing by the Transport Secretary
during the negotiations. The Mayor had rejected the extension of the £15
daily Congestion Charge to the North and South circular roads as
ministers had wanted – in a proposal which would have hit four million
more Londoners hard. The Government has now backed down from this
condition.
The Government also wanted to scrap free travel for under-18s and
over-60s. These proposals have also been successfully defeated. The
Government also wanted TfL fares to rise by more than the previously
agreed RPI+1 per cent This has also been successfully fought off.
The deal makes around £1.8 billion of Government grant and borrowing
available on current projections to TfL in the second half of this
financial year. Transport for London will itself make up through cost
savings the £160million gap the deal leaves from the nearly £2 billion
the organisation projects it will need to run the tube, bus & other
TfL services for the remainder of this financial year.
As part of the deal, London will also have to raise extra money in
future years. Decisions about how this additional funding will be raised
are yet to be made by the Mayor, but some of the options that he and
the government have agreed to be looked at include a modest increase in
council tax, pending the appropriate consultation, as well as keeping in
place the temporary changes to the central London Congestion Charge
that were introduced in June 2020, subject to consultation.
Despite providing the private rail operating companies with 18 months
of funding with no conditions attached, the Government has refused to
give TfL more than a six-month deal and even this has come with
conditions. This means another financial agreement will have to be
negotiated just before next year’s mayoral election, a far from ideal
time to negotiate a fair long-term deal for London.
The Mayor of London, Sadiq Khan said:
“These negotiations with Government have been an appalling and
totally unnecessary distraction at a time when every ounce of attention
should have been focused on trying to slow the spread of Covid-19 and
protecting jobs.
“The pandemic has had the same impact on the finances of the
privatised rail companies as it has had on TfL and the Government
immediately bailed them out for 18 months with no strings attached.
There is simply no reason why the same easy solution could not have been
applied to London, which would have allowed us all to focus on the
issues that matter most to Londoners, which are tackling the virus and
protecting jobs.
“I am pleased that we have succeeded in killing off the very worst Government proposals.
"These proposals from the Government would have hammered Londoners by
massively expanding the congestion charge zone, scrapping free travel
for older and younger Londoners and increasing TfL fares by more than
RPI+1. I am determined that none of this will now happen.
"This is not a perfect deal, but we fought hard to get to the best
possible place. The only reason TfL needs Government support is because
almost all our fares income has dried up since March as Londoners have
done the right thing.”
From London Green Party
Green Party Assembly Member and Mayoral Candidate, Sian Berry said:
"A six month agreement leaves all the same arguments to flare up again ahead of the Mayor and Assembly elections when we needed long-term security.
"I am sick of Londoners being used as a political football by the Government. It's clear is so many recent events that they are only interested in winning power. not governing well and the uncertainty this leaves Londoners facing is not in the city's best interests.
And it is completely unfair to make a council tax rise and fare increase cover travelcards for older and young Londoners.
If we had a fair, smart road charging system in the works for a longer term deal, these extra charges for all Londoners would not be necessary."