Emergency TfL funding extended as Mayor’s claims labelled ‘untrue’

The transport secretary Grant Shapps has accused the Mayor of London of making a series of false claims as the war of words over a long-term settlement for Transport for London (TfL) continues.

The Government has once again extended emergency funding for TfL, while Shapps has called for a “reset” of the relationship in a letter to the Mayor of London Sadiq Khan.

The existing funding agreement will be extended until July 13, so discussions can be resumed on a longer-term settlement, confirmed TfL. 

However, the letter from Shapps says claims by Khan that TfL has been "forced" by the Government into making significant cuts to London’s bus network were untrue.

Shapps said: “New cuts are not necessary and will not save much money.

“They have been artificially created by you as a political weapon in your campaign for a long-term capital funding deal.

“But bus operations have little or nothing to do with capital funding - they are supported by revenue subsidy, which the Government has provided throughout the pandemic and which it will continue to provide.”

Government funding for TfL since May 2020 already totals almost £5 billion, making it the largest single recipient of pandemic support across the transport sector, according to the Department for Transport (DfT).

“Business rates, your share of which was increased in 2017 to replace permanent Government capital support, will raise £1.8bn for TfL this year,” continued Shapps.

“TfL's receipts from road user charging have risen sharply because of your much-enlarged ultra-low emission zone.

“TfL's income (from fares, commercial activity, road charges, business rates, council tax, and the emergency revenue subsidy provided by us) is about the same as before the pandemic.

“In other words, there is, and will be, more than enough money to maintain services.

“Your claims that yet further cuts, of 18% to the buses and 9% to the tube, will be required unless we meet your demands for a capital deal are therefore also false.”

Shapps says that Khan’s claim that London's transport network is being "levelled down" is also hard to reconcile with the three major new rail schemes which have opened in London in the past six months - the Battersea extension of the Northern Line, the new station at Bank, and the Elizabeth Line.

He continued: “We do want to give TfL a longer-term capital deal. But your tactics are the wrong way to achieve one. They are harming London's interests.

“If we are to make a longer-term funding commitment, you must keep your promises and we must be able to deal with you and TfL on a basis of honesty and seriousness, not campaigns of scaremongering and threats.”

He added: “TfL's services are at no risk, unless you want them to be, and should not be undermined for political ends.

“As we have stated before, we will continue revenue support, in further temporary deals if necessary.

“We remain open to giving you a longer-term capital settlement. But it will require a reset of the relationship.”

A TfL spokesperson said: "We continue to discuss our funding requirements with the Government.

“It is essential London receives the sustained long-term Government funding that is vital for the coming years if a period of 'managed decline' of London's transport network is to be avoided. 

"Whilst in receipt of Government support, we have worked hard to progress all conditions placed on TfL and continue to believe that we have met them all. 

“Working together, we must achieve a longer-term capital funding settlement that ensures London's transport network can remain reliable and efficient, can support the jobs and new homes that rely upon it and can support the economic recovery of the capital and the country as a whole.

“We hope these discussions can be concluded successfully soon."