The continued political games between the Department for Transport and Transport for London shows no signs of coming to an end with yet another short-term funding agreement announced – this one truly is short-term as its only a 19 day extension. The new funding settlement will now expire on 13th July 2022.
This agreement is under the same terms as that which was due to expire on 24th June with the big sticking point for the DfT still remaining that they want to see TfL agree a plan which will see them reach financial sustainability as soon as possible and no later than April 2023.
Depending on your political allegiances you will probably either agree with the quotes below from Grant Shapps, Secretary of State for Transport, or Sadiq Khan, Mayor of London, about where the blame is and what is being asked. Either way the gradual drip of the funding is doing no-one any favours and both sides need to come to an agreement soon to ensure the financial future of TfL.
Grant Shapps said: “This extension to the current funding settlement is necessary in part due to the unsatisfactory progress made by TfL on its conditions, including pensions. Resolving these issues is an integral part of setting TfL on the path to financial sustainability, and government stands ready to engage constructively to reach a resolution. This extension ensures that they receive due attention, as well as allowing time for both sides to consider a longer-term capital settlement. 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 its emergency funding needs.”
In a lengthy statement in response, Sadiq Khan commented: “The pandemic is the only reason Transport for London (TfL) is facing a financial crisis. Having already refused to devolve additional funding sources, if the government continues to refuse to properly fund public transport in the capital, TfL will have no choice but to put London’s transport network into managed decline. TfL’s impartial experts have been clear that this would be the inevitable consequence of the conditions forced on it by the government.”