Transport for London: Funding

Stephen Hammond Excerpts

Monday 30th November 2020 Westminster Hall

[Stephen Hammond (Wimbledon) (Con)]

It is a great honour to serve under your chairmanship, Sir David, and I congratulate my hon. Friend the Member for Carshalton and Wallington (Elliot Colburn) on securing the debate. It pains me to agree with the hon. Member for Hammersmith (Andy Slaughter), which I do rarely, although this is the second time in a London debate that I have done so. He is right that we would look ridiculous if we tried to say in this debate that there has not been a fall in passenger numbers and that there has not been a financial consequence for TFL. We are clearly saying that is the case, and nobody is saying anything different.

As so many hon. Members have already pointed out, the Government have put in funding packages twice, with £1.7 billion earlier this month and a previous package of £1.6 billion, making £3.3 billion. Ridership has dropped across whole networks, but that is not what we are discussing. We are discussing whether the Mayor’s decisions had an impact on TfL’s finances prior to covid, and the answer to that question, whether one likes it or not, is a resounding yes.

The hon. Member for Hammersmith spoke about how the Mayor has improved various positions, but none of that was a surprise to the Mayor, because back in 2014 TfL’s debt position was set out, along with how sustainable funding would need to be put in place. It was also recognised prior to the 2016 mayoral election that, rather than receiving other financial resources, £16 billion of savings would have to be made by 2022. Of that, £12 billion had been found prior to the Mayor taking office, so the idea that he has been hugely successful in finding any of those savings is complete nonsense.

The agreement that the Mayor has signed alongside this funding package recognises explicitly that he has not done enough during his term of office to find any more of those savings or benefits. I will not reiterate the remarks of my hon. Friends the Members for Cities of London and Westminster (Nickie Aiken) and for Orpington (Gareth Bacon) about the numerous failings of Crossrail and the fact that the pay-as-you-go freeze has not benefited Londoners—something on travelcards might have done more—and £640 million has been lost in revenue.

The fact of the matter is that the agreement the Mayor signed with the Government for the funding package explicitly recognises that his financial management has not been good enough. That is why a major section of the agreement points out that he has failed to find a further range of operating efficiencies and that an assessment of capital efficiencies and a review of the long-term capital plan needs to be put in place. That is being done only because it is a condition of the package.

Finally, it is extraordinary that the Mayor has not proceeded with the plans produced under the previous Mayor and commissioner at TfL and gone through non-operational assets not generating any revenue that could be either used or sold off. That has a direct impact on the free travel for under-18s and over-60s that we are talking about—it is good that the Government’s package recognises its importance and ensures that it will continue—but there are also direct consequences for my constituents. The previous Mayor knew the value of infrastructure and invested in new trains for the District line. As a result of the delay or, indeed, cancellation of 21 infra- structure projects, part of the upgrade to the District line, which is key to the livelihoods of so many of my constituents, has not happened. That is a direct consequence of the Mayor’s financial mismanagement.

If the conditions that the agreement imposes on the Mayor were not in place, free travel for under-18s and over-60s, which is now protected, would be at risk. That is what we are talking about this evening—not what covid has caused but what was happening prior to that.