London's transport to get £250m government investment in 2024

TfL says it still faces a funding gap

London's transport infrastructure will get a £250m boost in 2024 under a funding package from the government.

The funding however cannot be used by Transport for London (TfL) for day-to-day operations and must be spent on capital investment.

Rail minister Huw Merriman said the deal was "fair to Londoners and taxpayers".

TfL said it was "on track" to day-to-day financial sustainability but would still face a funding shortfall.

The Department for Transport (DfT) said the package would be used by TfL for projects such as providing new Tube trains for the Piccadilly line.

Andy Lord, TfL's commissioner, said "huge efforts" had been made to reduce costs and increase passenger numbers since the pandemic.

He said TfL had "consistently made the case that additional government support for capital investment in transport is needed if we are to be able to continue to deliver vital improvements to London's transport network, unlock new homes and support growth across London and the UK".

'Short leash'

Mr Lord said TfL would now reassess its draft business case and "address the impact of the continuing shortfall in funding".

Ben Curtis, from charity Campaign for Better Transport, said: "Whilst this settlement will ensure the wheels keep turning, it is not helpful to the general economy of the country to keep London on such a short leash."

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The DfT said it had provided nearly £6.4bn since 2020 to support transport in London.

Mr Merriman said the latest cash injection would bolster manufacturing jobs around the UK.

"This investment must be well managed in a way that doesn't unfairly burden the pockets of taxpayers and motorists," he added.

Mayor of London Sadiq Khan said he was "relieved" that TfL was to receive the one-year capital funding but added: "It's still vitally important that we agree a decent long-term funding settlement from the government that allows us to plan and invest for the infrastructure London will need over the coming decades."

The funding will go towards building new Tube trains for the Piccadilly line

Analysis

By BBC London transport correspondent Tom Edwards

When we talk about capital funding it means cash for new infrastructure and also money for renewing and repairing existing assets like roads and tracks, as opposed to cash for day-to-day operations of transport.

What this £250m for one year is really doing, is maintaining the status quo and kicking any bigger capital funding deals down the road. It means the new Piccadilly line trains being built in Yorkshire can continue to be built. Other than that, it probably means there won't be any other big ticket items.

Transport for London (TfL) already gets £200m a year capital funding from government.

TfL retains business rates and can pay for three quarters of capital funding itself, but it still needs that help from central government.

It wanted £500m a year, over a longer time period, so it could plan things like new Piccadilly line signalling and the Bakerloo line extension.

One phrase sticks out in the government's letter to Transport for London. It says TfL should in the future "plan prudently". That doesn't sound too promising for more investment. TfL says it will now have to "reassess its draft business plan".

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