Transport for London (TfL) and the UK Government are continuing their talks on additional funding, which has now been extended for two weeks until the end of October.
As TfL’s actual funding shortfall to 17 October was less than £1.6 billion, largely due to higher than anticipated ridership, the funding provided under the existing Funding Package will remain sufficient while discussions continue throughout the next two weeks, until 31 October 2020.
Before the coronavirus pandemic, TfL was on the path to achieving a level of financial self-sufficiency almost unheard of for transport authorities around the world. But the pandemic has massively impacted TfL’s finances and significantly reduced its fares revenue.
In May, the government agreed a £1.6 billion funding and financing package, for TfL to protect key services, helping people to stay safe during the pandemic and supporting the capital’s gradual recovery from COVID-19.
Two months later, in July, the Secretary of State for Transport announced a rapid review of TfL’s financial situation and the options for strengthening its future sustainability.
A TfL spokesperson said: “We continue to discuss our funding requirements with the government and hope these discussions can be concluded successfully soon, so we can help London through the next phase of the pandemic.
“We have today agreed with the Government that our funding will be extended for two weeks so that these constructive discussions can be concluded.”