UK: The most recent extension of Transport for London’s extraordinary funding agreement expired at 12.00 on August 3. TfL had sought a short extension to continue discussions about the government’s draft proposal for a long-term funding settlement, but was offered 5½ days instead of the two weeks it had requested.
Although the current arrangement has ended, TfL said it could meet its obligations in the near term. Discussions with the Department for Transport were ongoing to ensure that the government proposal was deliverable and would provide the funding needed to prevent reductions in services.
A spokesperson for Mayor of London Sadiq Khan told Metro Report International ‘TfL finally received a long awaited proposal for a funding settlement from the government late in the evening on July 22. While a funding proposal from the government is welcome, it is clear there are significant issues that need discussion. It is unfortunate this was not resolved by the time the current funding deal expired. It is vital we get a sustainable funding agreement for TfL in place swiftly, and these discussions must be concluded successfully as soon as possible.’
London’s Transport Commissioner Andy Byford confirmed that ‘we are in active discussion with the government to ensure that the draft funding proposal that they have made is fair and deliverable and can prevent the managed decline of the capital’s transport network. We hope these discussions can be concluded successfully soon.’
| Transport for London government support agreements resulting from the coronavirus pandemic | ||
|---|---|---|
| Start | End | Support |
| May 15 2020 | October 17 2020 | UK government agrees the first funding package, an extraordinary support grant of £1·095bn and a loan of £505m to support continuity of operations at TfL |
| October 18 2020 | October 31 2020 | Higher than anticipated ridership means the existing package is sufficient for a two-week extension, agreed on October 16 2020 |
| October 18 2020 | March 31 2021 | H2 package agreed and backdated: government approves an extraordinary support grant of £905m, and incremental borrowing by TfL of £95m |
| April 1 2021 | May 18 2021 | H2 package extended to cover the period of the elections for the Mayor of London |
| May 18 2021 | May 28 2021 | H2 package extended by a further 10 days, with a payment of £65m and a top-up grant available based on actual passenger revenues |
| May 29 2021 | December 11 2021 | Third funding package; the six-month H3 deal reached on June 1 provides an extraordinary support grant of £1·08bn, with top-up grants if revenues are lower than forecast and TfL repaying any excess; this provides TfL with certainty that it will receive revenues of £1·78bn on top of the £1·08bn grant |
| December 11 2021 | December 17 2021 | Funding Package is extended; terms amended to define the funding period as May 29 2021 to December 17 2021. |
| December 18 2021 | February 4 2022 | Further extension announced on December 17 2021. |
| February 4 2022 | February 18 2022 | Further two-week extension agreed on February 4. Provisions remain materially the same, including the top-up grant mechanism. |
| February 18 2022 | February 25 2022 | One week extension announced on February 21 after Transport for London asked for time to consider a funding deal proposed by the government. |
| February 26 2022 | June 24 2022 | Fourth funding package. |
| June 25 2022 | July 23 2022 | H4 package extension announced on June 24. |
| July 23 2022 | July 28 2022 | Further extension announced on July 13. |
| July 28 2022 | August 3 2022 | Further extension announced on July 28, to give TfL time to discuss the government’s draft proposal for a long-term funding settlement. |
| 12.00 August 3 2022 | Funding agreement allowed to expire. | |
