UK: Another short-term extension of Transport for London’s extraordinary funding agreement with the government was announced on July 13, the day the previous extension was due to expire.
The latest extension of the fourth of the funding packages introduced after ridership collapsed during the coronavirus pandemic runs for 15 days until July 28.
In a written statement to parliament, Secretary of State for Transport Grant Shapps said ‘this extension to the current funding settlement is necessary due to the unsatisfactory progress made by TfL on meeting agreed deadlines, including relating to pensions. Resolving these issues is an integral part of setting TfL on the path to financial sustainability, and government stands ready to engage constructively to reach a resolution. This extension ensures that they receive due attention.’
TfL said ‘we have worked hard to progress all conditions placed on TfL, and continue to maintain that we have met them all’.
Mayor of London Sadiq Khan said ’the government has still not put forward any proposals for discussion on the long-term funding London needs. I am growing increasingly concerned that we can’t wait any longer without serious consequences.
’This is a £10bn transport authority that is crucial to supporting jobs and economic growth. Without a long term funding deal, TfL will have to prepare to make further painful cuts to London’s transport network in its “managed decline” scenario.’
| Transport for London government support agreements resulting from the coronavirus pandemic | ||
|---|---|---|
| Start | End | Support |
| May 15 2020 | October 17 2020 | UK government agrees the first funding package, an extraordinary support grant of £1·095bn and a loan of £505m to support continuity of operations at TfL |
| October 18 2020 | October 31 2020 | Higher than anticipated ridership means the existing package is sufficient for a two-week extension, agreed on October 16 2020 |
| October 18 2020 | March 31 2021 | H2 package agreed and backdated: government approves an extraordinary support grant of £905m, and incremental borrowing by TfL of £95m |
| April 1 2021 | May 18 2021 | H2 package extended to cover the period of the elections for the Mayor of London |
| May 18 2021 | May 28 2021 | H2 package extended by a further 10 days, with a payment of £65m and a top-up grant available based on actual passenger revenues |
| May 29 2021 | December 11 2021 | Third funding package; the six-month H3 deal reached on June 1 provides an extraordinary support grant of £1·08bn, with top-up grants if revenues are lower than forecast and TfL repaying any excess; this provides TfL with certainty that it will receive revenues of £1·78bn on top of the £1·08bn grant |
| December 11 2021 | December 17 2021 | Funding Package is extended; terms amended to define the funding period as May 29 2021 to December 17 2021. |
| December 18 2021 | February 4 2022 | Further extension announced on December 17 2021. |
| February 4 2022 | February 18 2022 | Further two-week extension agreed on February 4. Provisions remain materially the same, including the top-up grant mechanism. |
| February 18 2022 | February 25 2022 | One week extension announced on February 21 after Transport for London asked for time to consider a funding deal proposed by the government. |
| February 26 2022 | June 24 2022 | Fourth funding package. |
| June 25 2022 | July 23 2022 | H4 package extension announced on June 24. |
| July 23 2022 | July 28 2022 | Further extension announced on July 13. |
