TfL budget to cover costs but Londoners still set for fares hikes
Transport for London (TfL) has said its latest budget will allow it to cover its operating costs, as fare rises continue to hit Londoners’ pockets with a four per cent rise set for next year.
London’s transport network will achieve an overall operating surplus of £79m, its 2023/24 financial statement revealed, which it wants to invest in enhancing provision.
But TfL commissioner Andy Lord has told City Hall the operator expects to bring in a four per cent fare rise in 2024/25.
“We are currently assuming a RPI +1 per cent fares increase in subsequent years, though obviously all fare decisions are ultimately for the mayor,” he told the London Assembly.
It comes just weeks after the latest round of fare rises, with Travelcard and pay as you go caps up by an average of just under six per cent as the cost of living crisis continues to bite.
TfL says the current round will create an additional £98m in income which the Department for Transport (DfT) has confirmed it can retain.
Lord urged the government to provide “continued capital investment” to allow TfL to proceed with replacing rolling stock and signalling infrastructure.
“Our work on delivering the Elizabeth line, the Overground extension to Barking Riverside and the extension of the Northern line to Battersea have all shown the power of transport investment both to London and the wider UK supply chain,” he said.
Post-pandemic TfL budget
TfL’s reliance on fare income has fallen from 72 per cent pre-pandemic to 65 per cent of its total income.
But it expects to see a seven per cent increase in ridership over the next year, giving it a cash boost of £800m and moving it into ‘profit’ for the very first time.
Lord added that he was “immensely proud of the hard work that everyone at TfL has contributed to get us to this significant point in our financial recovery”.