Ministers and TfL agree £250m government funding in a bid to upgrade London's public transport

Ministers and Transport for London (TfL) have today (18 December 2023) agreed a new £250m funding injection for 2024 to improve London’s transport system.

The government has been clear that this investment is for TfL to continue delivering its investment programme, including new trains for the Piccadilly line, a scheme which will support an estimated 700 skilled rail manufacturing jobs in Yorkshire and up to 2,000 more jobs in supply chains across the country. 

Rail Minister, Huw Merriman, said: “We’re investing in transport across the country and today’s agreement will have a tangible, positive impact not just for people travelling in and around the capital but also the millions who visit every year.”

Andy Lord, London’s Transport Commissioner, said: “Through a huge effort to reduce costs and rebuild our ridership and revenue following the pandemic, TfL is now on track to be financially sustainable in terms of its day-to-day operations. We are also able to cover the cost of the majority of our capital investment.

“We, alongside London’s business stakeholders and others, have consistently made the case that additional government support for capital investment in transport is needed if we are to be able to continue to deliver vital improvements to London’s transport network, unlock new homes and support growth across London and the UK.”

John Dickie, Chief Executive of BusinessLDN, said: “A capital funding deal for TfL was on the Christmas wish list for Londoners and businesses across the capital so it is a relief that a one-year settlement has finally been reached.

“This will provide some short-term certainty but it is now important that a multi-year funding deal is agreed to enable London and suppliers across the country to plan for the future with confidence. A world-class public transport network is vital to keep London moving, retain its position as a global city and support jobs across the country.”

With central government having already provided nearly £6.4bn since 2020 to support transport in London, this latest package supports much-needed capital  investment. TfL is working to achieve operational financial sustainability this year and its draft business plan, considered by the board earlier this week, sets out its plans to ensure this continues.

Under the last settlement, £1.2bn of government funding supported almost £3.6bn of major transport projects in the capital, including the completion of a number of major projects, new road schemes and increased bus priority.

In providing this funding, the government sought to help TfL modernise, operate more efficiently and reach a more stable financial footing. Today’s agreement recognises TfL has made progress in this regard and that it is on track to reach financial sustainability by the end of the financial year.

By Mark Adair – Correspondent, Bdaily

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