The Government and Transport for London (TfL) have agreed a new £250 million funding settlement for 2024 to improve London’s transport system. 

The investment, says ministers, is for TfL to continue delivering its investment programme, including new trains for the Piccadilly line.

Rail Minister, Huw Merriman, said: “We have invested billions into the capital’s transport system in recent years. This investment must be well managed in a way that doesn’t unfairly burden the pockets of taxpayers and motorists.”

Government has already provided nearly £6.4 billion since 2020 to support transport in London. 

TfL is working to achieve operational financial sustainability this year and its draft business plan, considered by the board earlier this week, sets out its plans to ensure this continues.

Andy Lord, London’s Transport Commissioner, said: “Through a huge effort to reduce costs and rebuild our ridership and revenue following the pandemic, TfL is now on track to be financially sustainable in terms of its day-to-day operations. We are also able to cover the cost of the majority of our capital investment. 

“It is good news that we have now reached an agreement with the Government on the capital support that they will provide over the next year, and we are grateful for the support.

“However, we will now need to reassess our recent draft business plan and address the impact of the continuing shortfall in funding. That work is underway so that we can confirm as soon as possible what we will deliver for London.”

As part of the deal, TfL will set out in July 2024 its plan to maintain and strengthen its finances going forward while continuing work to reform its pension scheme and seeking efficiencies in its investment programme. 

The Government and TfL agree that under this new agreement funding cannot be used to support TfL’s day-to-day operations.