London Underground and TfL

16.11.18

Crossrail delay to mount up £200m in lost TfL revenue, London Assembly says

Costs incurred by the lengthy delay to London’s Crossrail project could cost Transport for London (TfL) over £200m in lost revenue, London’s financial watchdog has revealed.

In a report released this week, the London Assembly’s Budget and Performance Committee, assessing TfL’s finances, said TfL “has already maxed out its corporate credit card” to keep the project going to March 2019, with around 10% of the lost revenue being missed out on between now and April.

Calculations made by the London Assembly will cost the financially-challenged TfL almost £550,000 a day, rounding out to between £200m and £210m, adding to its already high £1bn deficit.

It is believed that the jarring figure will be on top of an already predicted lost £20m in fares for the financial year, which was confirmed by commissioner for TfL Mike Brown when the delay was first announced. Just last month, Crossrail was handed a £350m lifeline to prevent further delays for the project.

In the damning report ‘TfL finance: The end of the line?’, the committee argued that TfL “clearly has some way to go” before they can become a sustainable public body, and that the Crossrail saga rolling into next year and beyond will make TfL’s job “that much harder.”

Chair of the committee Gareth Bacon wrote: “If this has been difficult to write, imagine how difficult it must be for TfL to plan ahead. We now have fresh information about what the Crossrail delay will cost TfL – almost £200m in 2019-20 in lost passenger fares and advertising revenue.

“What we do know is that TfL has already maxed out its corporate credit card just to keep the project going to March 2019. What really surprised us was to hear that TfL hasn’t even thought about a second fares freeze yet. Freezing fares is a political choice and any mayor is entitled to freeze fares. But Londoners need to know what they are committing to first, and that means how much it will cost.”

In an interview with RTM last month, London Assembly transport committee chair Caroline Pidgeon said a Financial Conduct Authority (FCA) investigation should “absolutely” be launched if delay allegations are true. Pidgeon also urged London Mayor Sadiq Khan to restore confidence in Crossrail with “fresh management” of the £15.4bn project.

Enjoying RTM? Subscribe here to receive our weekly news updates or click here to receive a copy of the magazine!

Comments

There are no comments. Why not be the first?

Add your comment

 

rail technology magazine tv

more videos >

latest rail news

Cabinet Office releases procurement guidance to support suppliers

06/04/2020Cabinet Office releases procurement guidance to support suppliers

In light of the current COVID-19 pandemic, the Cabinet Office has changed the way procurement cards may be used. The outbreak has placed increase... more >
Key railway workers keep Britain moving

06/04/2020Key railway workers keep Britain moving

As the country enters its third week of lockdown the rail industry has been working tirelessly to keep the country moving. A condensed passe... more >
Public consultation extended by Network Rail on major upgrade to railway in West Yorkshire

06/04/2020Public consultation extended by Network Rail on major upgrade to railway in West Yorkshire

Network Rail has lengthened the public consultation period in which residents and passengers can express their opinions and give feedback on prop... more >

editor's comment

23/01/2018Out with the old...

Despite a few disappointing policy announcements, especially for the electrification aficionados amongst us, 2017 was, like Darren Caplan writes on page 20, a year generally marked by positive news for the rail industry. We polished off the iconic Ordsall Chord (p32), hit some solid milestones on Thameslink (p40), progressed on ambitious rolling stock orders (p16), and finally started moving forward on HS2 (p14) ‒ paving the way for a New Ye... read more >

last word

Encouraging youngsters to be safe on the railway

Encouraging youngsters to be safe on the railway

This summer, Arriva Group's CrossCountry and the Scout Association joined to launch a new partnership to promote rail safety among young people. Chris Leech MBE, business community manager at the... more > more last word articles >

'the sleepers' daily blog

Maximising efficiency requires investment in data, but it’s rewards for rail could be extensive

14/11/2019Maximising efficiency requires investment in data, but it’s rewards for rail could be extensive

Rail Technology Magazine’s Matt Roberts explains the significant role data can play within the future development of the rail industry. Standing as a cornerstone of the UK transport network, the rail industry is forever striving to innovate and maximise efficiency in all aspects of i... more >
read more blog posts from 'the sleeper' >

comment

The challenge of completing Crossrail

05/07/2019The challenge of completing Crossrail

With a new plan now in place to deliver Crossrail, Hedley Ayres, National Audit Office manager, major projects and programmes, takes a look at ho... more >
Preparing the industry to deliver trains for the future

04/07/2019Preparing the industry to deliver trains for the future

The move to decarbonise the rail network involves shifting to cleaner modes of traction by 2050. David Clarke, technical director at the Railway ... more >
Sunshine future beckons for South Wales Railways, says 10:10 Climate Action’s Leo Murray

02/07/2019Sunshine future beckons for South Wales Railways, says 10:10 Climate Action’s Leo Murray

Smart electrification is the way to boost clean energy resources, argues Leo Murray, director at 10:10 Climate Action. Contractors are clear... more >
Ambition doesn’t have to be expensive, says Midland Connect's Maria Machancoses

02/07/2019Ambition doesn’t have to be expensive, says Midland Connect's Maria Machancoses

The TCR Midlands conference is only days away and tickets are going fast for the sector event of the year at the Vox Conference Centre in Birming... more >

rail industry focus

View all News

interviews

Cabinet Office releases procurement guidance to support suppliers

06/04/2020Cabinet Office releases procurement guidance to support suppliers

In light of the current COVID-19 pandemic, the Cabinet Office has changed the way procurement cards may be used. The outbreak has placed increase... more >