Transport for London (TfL) today issued the following update on Government funding:
A Transport for London (TfL) spokesperson said: "We continue to discuss our funding requirements with the Government. There is no UK recovery from the pandemic without a London recovery and there is no London recovery without a properly funded transport network in the capital. It is essential London receives the sustained long-term Government funding that is vital for the coming years if a period of 'managed decline' of London's transport network is to be avoided.
"We have agreed with the Government that our existing funding agreement will be extended until 25 February so that these discussions can be concluded.
Working together, we must achieve a longer term capital funding settlement of at least three years that ensures London's transport network can remain reliable and efficient, can support the jobs and new homes that rely upon it and can support the economic recovery of the capital and the country as a whole. We hope these discussions can be concluded successfully soon."
It comes as reports emerged over the weekend that the beleaguered organisation may file for bankruptcy should an agreement fail to be agreed.
Yesterday, London’s financial paper City AM quotes a spokesperson for the Mayor of London saying that the Mayor Sadiq Khan was still “locked in negotiations” with the Government about a new funding deal and it was “vital” the government agreed to deliver long-term funding for transport in the capital.
“Some 43,000 jobs outside London depend on TfL’s investment,” the spokesperson said in a statement.
“If the Government refuses to deliver the funding TfL needs, it could impact TfL’s UK-wide supply chain, hitting jobs and growth and holding back the economic recovery in London and across the UK,”
City AM says TfL is currently unclear on whether it will be able to balance its books and chief financial officer Simon Kilonback is understood to be readying a number of measures in the event that government does not indicate it will provide funding in the coming days.
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