Transport for London: Funding

Nickie Aiken Excerpts

Monday 30th November 2020 Westminster Hall

[Nickie Aiken (Cities of London and Westminster) (Con)]

It is a pleasure to serve under your chairmanship, Sir David. I welcome this debate, brought by my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn). Before I start, I have an interest to declare: I have two teenagers who enjoy the free travel for under-18s.

I recognise the detrimental effect covid-19 has had on TfL’s finances. Anyone using the tube or bus will know of the dramatic fall in passenger numbers. I travelled here on the tube. The stations and carriages are empty. But we must accept that the rot in TfL’s finances had set in way before covid-19. Much of the blame for TfL being in such an awful mess can be laid at Mayor Khan’s door. Yes, the Government’s decision to phase out the operating revenue element of the TfL grant had some effect—losing £700 million a year would have been difficult to absorb—but the Mayor knew that before he stood for election and introduced his fare freeze. There was no strategic thinking about what could happen in City Hall once he was elected.

The Mayor introduced a major fare freeze across the network despite advice from his transport commissioner not to do so, which he ignored. That led to an extra loss of £640 million on top of the £700 million, which meant the Mayor had a loss of more than £1 billion before he had even finished his first year. This issue has also led to a fall in passenger numbers at the same time—a triple whammy, even before covid struck. In my constituency, people are now feeling the effects of the Mayor’s inability to invest in infrastructure. I might add that people in Pimlico desperately need the tube to be upgraded, because of the terrible noise that they have to deal with. The Mayor and his deputy have made personal promises to the people of Pimlico that now cannot be kept.

One of the big issues that has really affected my constituency is the extension of the congestion charge. A number of constituents and businesses have come to me because they are concerned about the extension to 10 pm from Monday to Friday, and about the extension to Saturdays and Sundays. Many people now describe it as a two-tier system, because at the same time as extending the congestion charge, the Mayor stopped the resident discount from 1 August. That applies no matter how long someone has been living within the congestion charge zone. Their circumstances might change: they will get older and might become frail, or they might have infirm children who need to be transported in a car. Such people can no longer benefit from the 90% reduction, which is a massive issue.

I have had doctors, pharmacists, foster carers, charity workers and market traders all say to me that the extension of the congestion charge and the ending of the discount is having a detrimental effect on their lives. One doctor who lives in Westminster has now been posted to the Surrey border. He wanted to use his car because of the times of his shifts, so he now drives, which adds £15 extra to his daily commute. A market trader in Covent Garden told me that she works at her small business two days a week, on Saturday and Sunday. The congestion charge on Saturdays and Sundays has now added £1,500 to her bottom line. At a time when we are trying to have an economic recovery, the charge is another blow to small businesses.

Why can the Mayor not consider the gross over-expenditure that he has introduced? TfL employees now have a 31% pension contribution from their employer, compared with 13% for doctors, nurses, police officers, firemen and teachers. Why should TfL employees benefit from that? Why has there been an increase of nearly 100 people who earn £100,000 a year working for TfL? All this fat could be cut, so that TfL can keep free travel for under-18s and the over-60s. It has to change, and the Mayor has to be held to account on this issue.