Transport for London have reached a settlement with the Government to receive support on almost £3.6bn worth of upcoming projects, whilst also securing the long-term future of London’s transport network. This settlement comes with just under £1.2 billion of upfront funding, bringing the government’s total funding to over £6 billion.
This latest settlement follows on from a previous 4 emergency deals that secured over £5bn of upfront funding and a pledge of over a billion pounds of investment per year at the most recent spending review.
The securing of this massive funding boost will aid in the lost revenues that have stemmed from the post-pandemic uncertainty as well as the ongoing RMT strikes. Whilst financially subsidising losses from revenue, the funding will also enable the delivery of key projects across the network that will revolutionise travel across London.
Examples of the projects at hand, are the construction of brand-new Piccadilly line trains, as well as modernisations and upgrades across the District, Metropolitan, Hammersmith and City and Circle lines. These upgrades will see the long-awaited repair of Hammersmith Bridge and the extension of the Northern Line. These infrastructural upgrades would not be possible without this extra secured funding.
The deal will also see a dedication of £80m per year to active travel schemes with the expansion of walking and cycling infrastructure, which will aid in the reduction of congestion and carbon usage around the nation’s capital. Driverless trains will also see major investment through the deal, with Transport Secretary Grant Shapps belief that they are key in London maintaining its position as Europe’s greatest transport network.
Transport Secretary, Grant Shapps said:
“For over 2 years now we’ve time and again shown our unwavering commitment to London and the transport network it depends on, but we have to be fair to taxpayers across the entire country.
“This deal more than delivers for Londoners and even matches the Mayor’s own pre-pandemic spending plans but for this to work, the Mayor must follow through on his promises to get TfL back on a steady financial footing, stop relying on government bailouts and take responsibility for his actions. Now is the time to put politics to one side and get on with the job – Londoners depend on it”
As part of the settlement the Mayor has also committed to:
- submitting proposals to reform pensions, in line with TfL’s plans to become financially sustainable, by the end of September
- continue to progress ongoing initiatives to modernise, reform and become more efficient
- achieve the revenue generation proposals promised in February and progress proposals through public consultation
The implementation of these plans left in the capable hands of London Mayor Sadiq Khan and the TfL, whilst they accelerate crucial reforms to ensure the network becomes financially sustainable by 2023.
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