A funding agreement has been reached with the UK government: the current forecast is about $1.8 billion, based on the actual amount of passenger revenue. “Getting this agreement with the government allows us to help London in the next phase of the pandemic. We will continue to work with the mayor and the government on our longer-term funding needs. As always, our employees work tirelessly to serve the people and businesses of London; support the city`s economy and offer our customers excellent, safe and reliable service every day. The sources of funding for London`s transport infrastructure are increasingly uncertain. The impact of COVID-19 has significantly reduced TfL`s revenue due to the decrease in passenger numbers. The amount of business rates available to the mayor is also expected to decrease over the next few years due to LA COVID-19. Before COVID-19, the London Country principle was a challenge against other against financial winds, including the total abolition of a central government grant in 2015/16. Covid-19 has made London`s finances even more difficult, which is why we must continue to work with the government on a reasonable funding system. The funding will enable Transport for London to ease the deficit due to lost revenue in the face of the coronavirus pandemic. The basic amount of the financial package is GBP 1 billion for the period from 18 October 2020 to 31 March 2021. It consists of an exceptional grant of 905 million pounds and 95 million GBP of incremental loans from TfL of the Public Works Loan Board. Due to the high uncertainty surrounding the number of passengers, the financial package can be modified based on actual passenger revenues.
TfL estimates that it will provide approximately 1.8 billion pounds of funding. TfL has committed to contribute some GBP 160 million to the projected funding shortfall, either in the form of additional revenue or savings through a mix of less capital and operating expenses combined with stronger financial control measures. The actual number will vary depending on passenger revenues, but this will allow TfL to continue operating in London for the remainder of the year. Discussions are ongoing on longer-term sustainable financing opportunities. The Mayor of London today reached an 11-hour agreement with the government for a funding agreement to operate The Capital`s Metro, Bus and Other Services in the capital until March 2021. Transport for London (TfL) and the government have entered into a funding agreement worth approximately GBp 1.8 billion. As part of the agreement, London will also need to find additional funds in the coming years. Decisions on how to find these additional funds are still being taken by the mayor, but some of the options he and the government have agreed to include a modest increase in municipal tax until consultation and maintenance of the temporary changes to The Central London Congestion Tax introduced in June 2020, subject to consultation. Mayor Khan has drawn up an agreement with the government that will allow Transport for London (TfL) to receive $1.8 billion in funding to secure public transport funding in London for a further six months. The union, which represents thousands of workers employed in all of London`s public transport, has cautiously welcomed the funding agreement of London Mayor Sadiq Khan, which will run public transport in the capital. The government stated that all additional funds needed to complete the project were needed by London, and this was confirmed in the government funding agreement of 14 May.