A second bailout agreement has been reached between the UK government and Transport for London (TfL) to keep tube, bus and other transport services running for the next six months.
The £1.8bn deal, which mayor of London Sadiq Khan described as “not ideal”, secures TfL services until March 2021 following a continued fares shortfall as a result of the coronavirus pandemic. Khan said: “The only reason TfL needs government support is because its fares income has almost dried up since March.”
In reaching an agreement, controversial plans to expand the Congestion Charge Zone (CCZ) to both the North and South Circular roads have been shelved. Free travel for under 18s and over 60s will also continue under the new deal.
The government’s plan to increase fares has also been halted, however London will have to raise extra funds in the future via a potential increase in council tax. Furthermore, temporary changes to the central London CCZ, introduced in June, are to remain in place. These include a 30% increase in the fee to £15 and an extension to the zone’s operating hours, from 07:00-22:00 seven days a week.
According to the government, Khan has also chosen to make £160m in savings over the next six months in TfL and raise fares by RPI+1%.
This latest support package, which follows a previous support package of £1.6 billion, will be in place until the end of the financial year, with another agreement requiring negotiation.
Khan added: “These negotiations with government have been an appalling and totally unnecessary distraction at a time when every ounce of attention should have been focused on trying to slow the spread of Covid-19 and protecting jobs.”
However, the government described the deal as “fair to taxpayers across the country”. Transport secretary Grant Shapps said the agreement highlighted the government’s commitment to supporting London’s transport network following the pandemic, enabling those needing to make essential trips to do so, even with tighter restrictions due from 05 November 2020.
The agreement was also welcomed by Campaign for Better Transport’s chief executive, Paul Tuohy, who said: “This funding will ensure that public transport in the capital can continue to run during the current health crisis and beyond, allowing essential travel and keeping the city moving.
“Public transport has a vital role to play in a green recovery and a fair, healthy, sustainable future. Now, more than ever, the government must protect and renew public transport for the future and to prevent a car-led recovery.”
