Transport for London: Funding

Debate between Gareth Bacon and David Amess

Monday 30th November 2020 Westminster Hall

[Gareth Bacon (Orpington) (Con)]

It is a pleasure to serve under your chairmanship, Sir David. At the outset, it is important to say that Transport for London is critical to the functioning of the city. It is vital for the economic and social wellbeing of London. These days, although it is unfashionable to say so, London is the economic motor of the UK economy. If TfL does not function, London does not function, and the knock-on effect on the country is inestimable, so it is right that the Government have stepped in.

It is worth pointing out that neither Transport for London nor the Government are responsible for the health crisis that we are in. It is true that, as my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) and the hon. Member for Hammersmith (Andy Slaughter) pointed out, the pandemic has devastated Transport for London’s finances. That is a fact and is not open for debate. It is right that the Government have stepped in twice over a six-month period, to the tune of £3.3 billion, and that cost is borne by the UK taxpayer collectively.

There has been much comment that certain benefits enjoyed by Londoners before the pandemic are not covered by the bail-out agreements. It is important to note that at pre-pandemic levels, there was more than £1 billion within Transport for London’s transport provision. More than £700 million of that went into buses, and there were £330 million of other concessions. The Government’s position in both bail-out agreements is that it would be inequitable to taxpayers across the country to pay for subsidised travel that is not enjoyed elsewhere. Why should taxpayers in Liverpool, Manchester and Birmingham pay for a benefit that Londoners enjoy but they do not?

London’s deputy Mayor for transport, speaking on behalf of the Mayor, has pushed back on that. She said that that amounts to levelling down, and that Londoners are more dependent on public transport. I think there is something in that argument, but the financial management at City Hall over the past four years leaves a lot to be desired.

The hon. Member for Hammersmith criticised my hon. Friend the Member for Carshalton and Wallington when he said that he had crudely politicised this issue. Has he ever met Sadiq Khan? I cannot imagine a politician in this country alive today who misses an opportunity to crudely politicise any issue at all.

There are other facts, which were laid out at some length by my hon. Friend. There is the fares freeze—or partial fares freeze, as it should be called, because it is not a complete fares freeze. I am sure that much will be made by Labour Members, when they come to speak, of the withdrawal of the revenue grant from Transport for London’s budget. They will not acknowledge that much of that is replaced by business rates, but they will harp on about the £700 million. They are right to draw attention to that withdrawal, because it has harmed Transport for London’s finances, but it did not happen in one year or overnight; it was phased in over a three-year period. The first year of it was under the previous Mayor, so candidate Khan, before he became Mayor Khan, knew about it. He knew that that money was going to disappear and he still, recklessly, pledged a fares freeze, a partial fares freeze, for the next four years in order to help garner votes to get himself elected. Transport for London’s costing of that at that time was £1.9 billion. Then, a few weeks later, it watered that down, because the commissioner was desperate to keep his job, to £640 million, and that is the figure that it is sticking at for the moment.

On top of that, we have, as my hon. Friend the Member for Carshalton and Wallington said, the massive delay to Crossrail. It is nearly £4 billion over budget and is four years late, and that will cost more than £1.6 billion in unachieved fares revenue. These things do not help, and they have happened.

Labour Members will say, and the Mayor has been saying ad nauseam, “Well, of course, this is a co-sponsored project between the Department for Transport and Transport for London.” That is true, but Transport for London is, and always was, the delivery arm for the project, because Crossrail Ltd, which the Mayor likes to blame, is a wholly owned subsidiary of Transport for London. And who chairs Transport for London? The Mayor of London. Crossrail’s delay can be laid squarely at the feet of Sadiq Khan.

We have heard about the 21 capital projects that have been delayed. We have heard about some of the fringe benefits—the TFL nominee pass scheme. We have heard—well, we had not heard about this—that trade union facility time at Transport for London has more than doubled under Sadiq Khan. There are now 81 people. The number of people who spend more than half of their time working solely on trade union facility activities has more than doubled. That is more than for the whole of the civil service put together.

We have seen other examples of Sadiq Khan’s wasteful approach to management. Staff costs at City Hall have gone up by 82% in four years. Does anybody believe that London is 82% better governed now than it was in 2016? Anyone at all? Of course not. The Mayor’s press office costs have increased by 33% since Sadiq Khan took office. There have been other really good headline-grabbing things, such as £800,000 spent on beach parties in 2018. And in 2019, £10 million was spent by the Metropolitan police to put every police officer over the rank of sergeant through a personality test to assign a colour to their personality. Apparently, that was critical. Ten million pounds was spent on that by this Mayor of London.

We are living in extraordinary times. The Government are dealing with an unprecedented health crisis. There is no manual for how to do this. The Government interventions, if they go to the full extent announced by my right hon. Friend the Chancellor of the Exchequer last week, will amount to £280 billion, and they are very, very extensive.

In London, the Government have demonstrated their commitment to maintaining the core functions of Transport for London by injecting £3.3 billion of UK taxpayers’ money to keep Transport for London afloat. I do not think that anybody in this Chamber will argue with that, but in the circumstances, given the fact that the benefits in question are not enjoyed outside London and that City Hall under Sadiq Khan has been so wasteful with public money, it is hardly surprising that the Government should expect City Hall to fund the retention of such benefits.

[Sir David Amess (in the Chair)]

I now have to impose a formal time limit of five minutes.