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London transport network failing to meet bailout savings, minister says

Reuters Commuters at Canning TownReuters
The government has paid nearly £5bn in bailouts to keep TfL services running during the coronavirus pandemic

Transport for London (TfL) is failing to meet savings targets imposed as part of its latest emergency bailout deal, the transport secretary has said.

The Department for Transport (DfT) has provided close to £5bn in emergency funds since May 2020, due to Covid-19.

Under the terms of the latest deal, due to run out on 24 June, TfL must find £400m of savings in 2022/23.

"TfL has already been making every efficiency saving it can," a spokesman for the mayor of London's office said.

Income for the London transport network, mainly from fares, has plummeted since the beginning of the Covid-19 pandemic.

A bailout was first agreed with the government in May 2020 and has been extended by differing lengths of time ever since.

The government has agreed to continue the bailout for TfL while they work out a deal to secure long-term funding.

Transport Secretary Grant Shapps said that TfL was "behind" on providing the details of how the savings would be achieved, according to the Local Democracy Reporting Service.

He added any funding deal "has to be a fair balance between the taxpayer nationwide and what happens in London".

Fare comparison graph

Mayor of London Sadiq Khan, who is also chair of TfL, said London's transport network was a "fundamental" driver of economic prosperity across the UK.

He urged Mr Shapps to "come to the table to agree a fair, long-term funding".

A spokesman for Mr Khan said Mr Shapps "knows full well" TfL's finances had been in a black hole due to a 90% drop in fares.

Getty Images Commuters at Camden TownGetty Images
TfL said it had cut its operating deficit by 71%

City Hall has already warned that a failure to secure long-term funding could lead to service cuts and the deterioration of the transport network.

"TfL has already been making every efficiency saving it can to try to protect services, cutting annual running costs by £1bn over the last five years and slashing its operating deficit by 71%," the spokesman said.

TfL is currently holding a public consultation on cuts to London's bus services, which could result in 16 routes being axed entirely and 78 routes being amended.

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