LONDON Transport Chief Executive Dennis Tunnicliffe announced on June 11 that LT would invest £1bn in the Underground and bus services over the next two years. The bulk of this will go on stations, track and signalling improvements. £480m will come from operating surpluses and £500m from government grants.
The LT annual business plan for 1998-99 published on May 21 forecast ’a record year for both revenue and demand’ leading to a gross margin (operating profit) of £226m this year. Both the business plan and the Underground Investment Plan reflect the additional £365m of investment grant released by Deputy Prime Minister John Prescott to support LT until the Private Partnership Initiative comes into effect in 2000.
Unveiling the business plan, LT Acting Chairman Brian Appleton said that London Transport was ’unique among world city transport operators’ with revenue exceeding operating costs for the past four years. o
