Interim extension of current Transport for London funding settlement
An interim extension of the current Transport for London funding settlement has been granted until 17 December 2021.
I am updating the House on an interim extension of the current Transport for London (TfL) funding settlement that was due to expire on 11 December 2021 by one week. This has been agreed by the Mayor of London.
On 8 December 2021, the Department for Transport (DfT) received a letter from the Mayor of London that provided further information on how TfL and the Mayor will raise new income of between £0.5 billion and £1 billion in line with the commitment agreed under the June 2021 emergency settlement. This response was already 3 weeks past the original deadline of 12 November 2021.
Government requires further clarification on these proposals and the Mayor of London has been asked to provide more detailed information by 15 December 2021. Should sufficient information be received, work on an extended further settlement will continue to support the capital and its transport network. We have thus far supported London with over £4 billion funding and will make sure services are protected whilst work on the next settlement is underway.
Support to TfL has always been on the condition that TfL reaches financial sustainability as soon as possible and with a target date of April 2023. The condition on identifying new or increased income sources is integral to TfL achieving that objective.
An extension of the existing funding settlement will provide TfL with support until 17 December 2021 by rolling over the provisions of the existing settlement, providing continued support to TfL and certainty to Londoners while we work with TfL on their funding needs.
The government is committed to supporting London and the transport network on which it depends, whilst balancing that with supporting the national transport network. I will update the House on the details of the next financial settlement after the close of this extension period.