Sadiq Khan slams Government over London transport bailout

The mayor of London has said ministers aim to impose a “triple whammy” of measures in return for rescue funding to cover the losses incurred through Covid-19.

The proposals include higher council taxes, an expanded congestion charge zone and a hike in Tube and bus fares.

TfL bosses have asked for a £5.7bn package to prop up services for the next 18 months, after passenger numbers and revenues plummeted in the aftermath the March lockdown.

In May, the government granted TfL £1.6bn in emergency funding to keep services running.

Then on Friday, a last-minute extension of that bailout was secured to cover another two weeks.

As part of the package of new measures, according to Khan’s office, ministers want to:

  • Extend the £15 Congestion Charge Zone to the North and South circular roads in 12 months’ time
  • Increase TfL fares by more than Retail Prices Index+1%
  • Introduce a new council tax precept charge in London for an unspecified amount.

Khan has also called for the government to publish in full a review of TfL’s finances, which he said has only been shared with redactions.

Mayor Khan said that these proposals:

“Would hit Londoners with a triple whammy of higher costs at a time when so many people are already facing hardship.

The government should be supporting Londoners through this difficult time – not making ill-advised and draconian proposals.

Ministers already forced TfL to bring forward proposals to increase the cost and hours of the congestion charge in May – now they want to expand it to cover four million more Londoners.

They also want to significantly increase fares in London and hit all Londoners with a regressive new tax.

I have been ready to talk with government about how the necessary funds can be raised – but a proposal which singles out Londoners for punishment is completely unacceptable, as well as making no economic sense.

I put them on notice that any attempt to hack away at our members’ pension rights will be met by an all-out campaign of political and industrial resistance.”

A Department for Transport Spokesperson said in response:

“We have agreed an extension to the support period and to roll over unspent funding from the Transport for London Extraordinary Funding Agreement, allowing further time for negotiations for a new settlement.

These discussions will ensure London has a safe, reliable network. It would be inappropriate to disclose further details at this stage.”

 

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