TfL is set to invest £8.1bn into London’s road and rail network as part of its long-term business plan.
Set to support London’s economic recovery whilst achieving financial sustainability, the draft plan includes an annual £150m expenditure in safe and active travel, as well as a £110m scrappage scheme.
The scrappage scheme will help offset the impact of the ULEZ London-wide expansion, which was announced late last week by London mayor Sadiq Khan.
The funding will also be used to carry out works on the tube network, replacing the ageing fleet on the Piccadilly line as well as providing a whole new set of trains for the Docklands Light Railway (DLR).
The improvements will help TfL rebuild ridership, as levels are currently at 80 per cent of pre-pandemic levels.
The investment comes as TfL was forced to increase its target savings to £1bn, meaning it will need to find an additional £600m by 2025/2026.
The public body said it will achieve savings by “improving inefficiencies” but no services will be cut.
Fares will however increase, as TfL is expecting to follow the government’s policy on the rail network, which could see an increase as high as 4 per cent.
“It is clear there are many challenges ahead, but TfL’s Business Plan sets out how London’s world-class public transport network will continue to contribute to a better, greener and fairer city for all Londoners,” said London mayor Sadiq Khan.
The plan – which is prioritising projects that will be financially viable within the next three to five years – will still need government support.
According to TfL, discussions with government officials on future capital investment are already underway.
“With continued Government capital investment from April 2024 we can continue to support our city and make it an even better, greener, safer and more successful place,” added TfL’s transport commissioner Andy Lord.
BusinessLDN’s transport programme director Adam Tyndall told City A.M. that “Londoners get a world-class travel experience” only by having businesses, central government and TfL work together.
A Dft spokesperson told City A.M. the government had already committed £6bn to secure TfL’s long-term future.
“The funding settlement agreed with Transport for London this summer matches the mayor of London’s own pre-pandemic spending plans and will support the delivery of major projects to boost travel across the capital,” they said.
Following strenuous talks between City Hall and ministers, the government in late August approved a long-term funding deal which will keep TfL going until the spring of 2024.
Under the agreement, TfL will receive an additional £1.2bn base funding, supporting almost £3.6bn worth of projects.