Transport for London: Mayor is free to raise council tax to cover funding

The mayor of London is free to add an extra £20 to council tax to cover Transport for London (TfL) costs, the government has said.

Sadiq Khan believes that to save the network from collapse he has "no alternative" but to increase the tax over the next three years.

The move would lead to an annual rise of £172m.

In a written statement to the Commons, Levelling Up Secretary Michael Gove said the measure was "disappointing".

A year ago Mr Khan requested flexibility to levy an additional £20 on band D bills to the Greater London Authority (GLA) precept.

Mr Gove said that although the government would not oppose the request, it had "expressed ongoing concern about the management of TfL by this mayor".

He added: "It is disappointing that London taxpayers are having to foot the bill for the GLA's poor governance and decision-making.

"Any decision to increase the precept is solely one for the mayor, who should take into account the pressures that Londoners are currently facing on living costs and his decision to raise council tax by 9.5% last year."

TfL, which was badly affected by coronavirus and working from home directives, is facing a £1.9bn budget black hole.

The mayor has warned of significant cuts to bus, Tube and road services, alleging the government is still refusing to properly fund TfL.

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