Transport for London: Funding deal extended by a week

Mayor of London Sadiq Khan has claimed bus services could be cut by a fifth without government money

Transport for London's emergency funding deal with the government has been extended by one week.

The current financial deal was due to run out on 11 December, but negotiations have been given a short grace period.

TfL is facing a £1.9 billion budget black hole and has warned of massive cuts to bus, Tube and road services.

Unions have warned public transport across the capital will grind to a halt without a long-term financial plan.

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

BBC London's Transport & Environment Correspondent Tom Edwards said a government spokesperson reported "encouraging" progress had been made in the talks, which is why the extension to 17 December had been granted.

However, they said more detail was needed on proposals from the London mayor on revenue-raising, modifying the fares structure, road charging and council tax. 

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

• Why Transport for London's finances are far from healthy

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Mayor of London Sadiq Khan has claimed bus services could be cut by a fifth and Tube services by almost 10% without government money.

TfL says it has 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.