Following an extraordinary Transport for London Board meeting on August 30, Sadiq Khan, the mayor of London and TfL have reached agreement with the UK government on a funding settlement until March 31, 2024.
The deal comes after TfL’s most recent emergency bailout, the fourth since revenues were hit by the impact of Covid-19, expired (Look in on London – last month) forcing TfL to rely on cash reserves.
It means that the government will fund the difference between TfL’s costs and revenue up to £598m for the period August 30, 2022 to March 31, 2023 and £565m for 2023-4. It will also continue to receive Business Rates Retention worth around £1bn each year. Despite this, TfL will still need to find savings of around £90m in 2022-3 and £140m in 2023-4 in addition to the £730m per year already committed to.