The game of political football that is government funding for Transport for London is continuing with the latest announcement adding an extra 15 days onto the current settlement – it is now due to expire on 28th July 2022.
The game of you haven’t done this, yes we have is continuing over the finer points of the deal with the government – through Secretary of State for Transport, Grant Shapps – saying that TfL have still to provide assurances of their financial sustainability going forward whilst TfL have said they have met them in full.
In a statement TfL said: “We have today agreed with the Government that our existing funding agreement will be extended until 28 July 2022 so these discussions can be continued. Whilst in receipt of Government support, we have worked hard to progress all conditions placed on TfL, and continue to maintain that we have met them all. Working together, we must achieve a longer term capital funding settlement that ensures London’s transport network can remain reliable and efficient, can support the jobs and new homes that rely upon it and can support the economic recovery of the capital and the country as a whole. We hope these discussions can be concluded successfully soon.”
Grant Shapps said: “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 government stands ready to engage constructively to reach a resolution. This extension ensures that they receive due attention.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 their funding needs. This extraordinary support to TfL has always been on the condition that TfL reaches financial sustainability as soon as possible and with a target date of April 2023 and government continues to press the Mayor of London and TfL to take the decisions needed to put the organisation on a sustainable footing.”
TfL is a bottomless money pit. They sped millions on new fleets of vehicles when the old ones were still perfectly servicable, pay very high wages and have a pretty much captive market. How they can cry poverty is beyond me!
I will never understand why any public transport operator should receive ANY form of public funding. If there are enough people to use the service (and there definitely are in London) then surely those users should be paying for it via their fares. If the fares don’t cover it then the fares should go up until they do cover it.
If there are not sufficient passenger journeys to cover the cost of operation, then surely the operation in question is not that necessary and should be shut down.
As an ex-bus driver myself I’ve said for many years that we need someone to do with bus travel what Dr Beeching did for the Railways!
For a comprehensive, unbiased overview of the TFL funding situation, I’d recommend reading Roger French’s blog at:
https://busandtrainuser.com/2022/07/14/not-another-extension
And just be mindful this is the funding and oversight model coveted by other big city Mayors such as Manchester, Merseyside and South Yorkshire and hence its potential impact on public transport in those areas if not resolved…
Providing a decent, integrated traansport system comprising, trains, trams, light rail and buses is essential in order to improve the quality of life and reduce pollution as well carbon emissions. Services need to be frequent and inter-connect with through ticketing. This needs to be subsidised and properly funded. If done properly it will draw people back from their reliance on private cars and increase public transport usage and we will all benefit. Short term funding is not the answer we need long-term solutions that do not change at the whim of politicians.
The number of tram or light rail schemes proposed in the UK that have failed to progress is testament to our failed funding system. Bristol, Portsmouth, Leicester, Liverpool, Leeds, Tees-side all failed to get off the drawing-board. The UK needs to prioritise public transport expenditure and accept -once and for all – that fares alone will never cover the cost of providing it.