The Secretary of State for Transport (Mr Mark Harper)
I am pleased to be able to inform the House that today the Government have agreed a capital funding settlement for 2024 with Transport for London (TfL).
This Government have showed its continued commitment to supporting London’s transport network to recover from the uncertainty of demand following the covid-19 pandemic. Since March 2020, Government have provided TfL with almost £6.4 billion of funding to maintain service levels and support the delivery of major capital projects as well as passenger revenue protection. This is on top of around £1.9 billion per annum of retained business rates for transport, including over £1 billion per annum for capital investment.
In addition, the Government have today agreed a capital settlement which provides a further £250 million of funding, which will enable TfL to continue to deliver its current capital programme and its committed major capital projects, including the delivery of the Piccadilly line upgrade phase 1. This not only provides benefits to Londoners, but it provides benefits for the rest of the country—the Piccadilly line upgrade on its own is expected to support an estimated 700 skilled jobs with a further estimated 250 jobs created in construction and up to 1,700 indirectly in the supply chain.
The current longer-term settlement will end in March 2024, and I continue to encourage Transport for London to modernise and to become a modern, effective, efficient and financially stable operator. Government support has enabled TfL to be on track to being financially sustainable and this capital settlement therefore requires TfL to demonstrate to Government that it is financially sustainable at the end of March 2024, and it will provide to Government in July 2024 its plan demonstrating how it will maintain and strengthen its financial sustainability from FY 24-25.
The decision to provide capital funding to TfL was made at a time when Government are also facing significant financial pressures, as is the rest of the country. Across the board the Government have taken difficult decisions on funding to support those who are hit hardest by rising costs. This is a settlement that is fair and proportionate to London whilst also taking into account funding provided elsewhere in the country and the cost to the national taxpayer, at a time of great pressure on national finances.
Through all of this, Government are continuing to work with the Mayor and TfL to ensure London’s transport system delivers for the public and businesses and contributes to the country’s economy.
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