TfL Financial Sustainability Plan
I am writing to let you know that today we have published our Financial Sustainability Plan, which sets out our critical role in driving the recovery of the London and UK economy, our contribution to wider Government objectives and a clear path for how our finances can be placed on a sustainable footing. The plan describes in detail how we can achieve financial sustainability – covering costs of day-to-day operations, maintenance and financing by 2023/24. It provides the starting point for our discussions with Government and is the start of a process, as there is much to be discussed before any final decisions are taken.
Our transport services are vital for the economic success and social wellbeing of London, which contributes around 23 per cent of the UK’s total GDP. Prior to the pandemic, we were on track to deliver an operating surplus by 2022/23, having taken almost £1bn out of our net operating costs over the past four years and increased cash reserves to more than £2bn. But the massive fall in ridership since has decimated our finances due to heavy reliance on fare revenue.
With London’s transport network crucial to the UK economy, we are seeking Government support for a plan which will drive a green economic recovery with a focus on maintaining service levels and decarbonising transport by 2030, while still achieving a level of financial self-sustainability greater than many mass transit systems around the world.
As with the recent Independent Review into TfL’s finances, this plan makes clear that TfL represents the right integrated organisational structure to deliver transport in London with an established track record of driving down costs and delivering the transport services that London needs.
The Financial Sustainability Plan is available to view online here.
As part of our funding deal with Government in October 2020, the Mayor was required to increase fares under his control in order to deliver an overall fares rise of 2.6 per cent (RPI+1). The Mayor has today released detail of the fares package which will be introduced on 1 March 2021 – the same day as changes in national rail fares. More detail is available online here.