A SHORT-TERM funding settlement from the government has been accepted by Transport for London. The deal was placed on the table at the end of last week, but the Mayor of London did not accept it immediately.
There will be an additional £260 million in ‘base funding’ plus additional revenue support of around £225 million, but this will be adjusted according to actual fares income. Ticket sales could rise if lockdown restrictions are eased later in the spring according to the government’s provisional timetable.
TfL said: ‘We have today agreed with the government that our funding will be extended until 18 May on the same terms that have applied to our funding for the second half of 2020/21.
‘We continue discussions with the government on our need for further financial support and a long-term capital funding deal. This is vital for us to support a strong and robust recovery from the pandemic and to provide confidence to our UK-wide supply chain.’
London Mayor Sadiq Khan added: ‘This seven-week extension will enable TfL to carry on running the safe, reliable and frequent services that will be vital as lockdown restrictions begin to ease.
‘These discussions will continue as it is essential that TfL has further financial support and a long-term capital funding deal that will allow it to support a strong and robust recovery for London and the UK.’
Meanwhile, the Department for Transport announced on Saturday that another £33 million will be provided to support tram and light rail operators in the English provinces. Taking previous awards into account, the DfT will then have paid a total of nearly £200 million to operators such as Manchester Metrolink, Nottingham Express Transit and Tyne & Wear Metro since the pandemic began drastically reducing their revenue from ticket sales a year ago.