TfL services may be cut due to funding gap, mayor warns

Bus services could be reduced by 20%

The mayor of London has warned transport services may be axed due to a £1.9bn funding gap.

Sadiq Khan claims bus services could be cut by a fifth and Tube services by almost 10% without government money.

A report to City Hall's finance committee says the pandemic means difficulties are worse than expected.

A government spokesperson said: "We have repeatedly shown our commitment to supporting London's transport network through the pandemic."

The mayor said: "Transport for London (TfL) is dealing with an unprecedented financial crisis caused by the pandemic.

"We are now less than a month away from TfL's emergency funding deal expiring on 11 December.

"Unless the government provides the long-term funding needed to maintain our public transport network, there will be no choice but to make significant cuts to services just as demand is growing again."

There have been repeated rows over funding for TfL and the cause of its financial crisis.

Analysis

By Tom Edwards, BBC London Transport Correspondent

The TfL funding gap was caused mainly by the drop in passengers due to the pandemic. This means it is currently reliant on financial support from the government.

But TfL insiders are worried that help is waning and more severe cuts are inevitable.

With that comes a potential downward spiral: cuts to services means a reduction in passengers which leads to a cut in fare income.

And there's more; the government has already said there will be no more money for new capital projects from 2023. Without that, any plans reliant on government cash are in trouble.

The rail industry is also facing cuts.

City Hall and TfL are now trying to find other income streams. Council tax, business rates, a London boundary charge for cars have all been mentioned but each has political and practical consequences.

It seems there are tough times ahead.

TfL says it had reduced annual running costs by more than £1bn in the last five years.

Despite that, Mr Khan says he still cannot balance the budget for any of the upcoming financial years to 2024/25 without further investment.

Annual running costs of TfL have reduced by more than £1bn in the last five years

With a legal requirement to balance the budget, the report sets out a move to a "managed decline" scenario for public transport in London.

"This would mean fewer, less frequent and more run-down bus and tube services for Londoners, making it more difficult to travel around the city," Mr Khan said.

"It would also mean more road and tunnel closures due to a lack of funding to maintain key transport infrastructure."

Passenger Russell Jewell said: "I think anything that cuts down the ability for people to move around the city is bad news for everybody.

Passenger Russell Jewell said cutting down the ability for people to move around the city was "bad news"

"If you travel on buses and Tubes, it doesn't feel like they're under capacity," he said.

"It doesn't feel like they could take a cut so I think it's a bad thing."

A government spokesperson said: "We have repeatedly shown our commitment to supporting London's transport network through the pandemic, providing more than £4bn in emergency funding to TfL.

"We will continue to discuss any further funding requirements with TfL and the mayor, and any support provided will focus on getting TfL back onto a sustainable financial footing in a way that is fair to taxpayers across the country."