Covid-19: TfL secures extension of government bailout

The government has paid more than £4bn in bailouts to keep TfL services running during the coronavirus pandemic

Transport for London (TfL) has secured a last-minute extension of its bailout to keep Tube and bus services running across the capital.

The government will continue the terms of the current £1.6bn package until 4 February - the equivalent of about £113m.

The last bailout was due to run out on 11 December but was extended by a week.

Mayor Sadiq Khan called for a longer-term deal, while the government said it was "committed to supporting London".

The money is the latest government bailout TfL has had to seek due to the impact of the pandemic.

The transport body's main source of income is fares - unlike many other major cities - and these have plummeted since the first lockdown.

Last month, Mr Khan warned that an entire Tube line could have to close if TfL's funding crisis was not addressed.

• Entire Tube line may have to close, mayor warns

• Bosses urge further help for London's transport

• Covid and Crossrail - why TfL's finances are precarious

He said the government was providing "short-term" funding which would "only last a matter of weeks", meaning Tube and bus services faced the prospect of "significant and damaging" cuts.

"This means that nothing has changed in terms of TfL having to plan on the basis of a managed decline of the capital's public transport network," Mr Khan said.

"As a condition of the emergency short-term funding TfL needs to avoid collapse. The government is forcing us to raise additional revenue in London through measures, like council tax, that will unfairly punish Londoners for the way the pandemic has hit our transport network."

Analysis

By Tom Edwards, BBC London transport correspondent

This is really a sticking plaster to buy some time and see how Omicron impacts transport and passenger numbers.

This is short-term financial aid to keep buses and tubes running.

It seems the Department for Transport (DfT) wants to give TfL a long-term capital settlement for infrastructure and renewals. TfL want a billion a year... but there is too much uncertainty. Will it look any clearer in February?

Other commentators say lurching from one short-term deal to the next like this isn't the way to run a transport network. Especially when the focus should be on London's recovery and Omicron.

We aren't much clearer about what transport in London will look like in the future. It means more talks at a later date.

A spokesman for the DfT said £4bn in emergency funding had already been provided and also criticised the mayor for providing his proposals three weeks past the original deadline.

"Further details will need to be provided by 19 January," he said. "This ensures we can fully assess these options before beginning discussions on a new funding settlement, to include a capital settlement, with TfL."

He added: "The government remains committed to supporting London - and the transport network on which it depends - whilst also balancing fairness to national taxpayers."