Snow1964
Established Member
The TfL Board were convened (actually a Teams meeting) at 17:00 today
The item on agenda was the Government offer of funding / bailout
It appears no official comments yet from either TfL or DfT, but various commentators (who might have contacts with inside knowledge) are saying elements have been rejected.
It is now 6 days since an extra 5 days were granted (after previous extensions) and there has been no official comments. Anyone know what is actually going on ?
The item on agenda was the Government offer of funding / bailout
1 Summary
1.1 This is a pivotal moment in TfL’s recovery from the coronavirus pandemic. The devasting impact the pandemic had on TfL’s finances meant that extraordinary Government funding has been required to continue to operate our services. Over the course of the pandemic, the Government has provided over £5bn of funding to TfL. However, TfL has been on a path back to financial sustainability and therefore on a declining trajectory of Government support. We are now discussing a last extraordinary funding settlement with Government, which will support TfL’s final stage of its path back to financial sustainability from April 2023.
1.2 TfL also requires longer-term capital funding to avoid the ‘managed decline’ trajectory that the current budget is based on. Managed decline involves significant service reductions, deteriorating asset conditions and no new enhancement schemes. This not only would mean that we will fail to make progress on critical priorities such as safety, decarbonisation and air quality, but it would trap London’s transport network in a vicious circle of deteriorating services and declining demand. Avoiding managed decline is critical to supporting the London economic recovery, and therefore the national economic recovery, following the pandemic.
1.3 In response to TfL’s request for short-term revenue support ending on 31 March 2023 – from which point TfL would be financially sustainable – and a multi-year capital settlement, Government has proposed a 20-month settlement with wide ranging and complex conditions.
1.4 This proposed funding settlement was shared with TfL late on 22 July 2022 and has been subject to intense discussions with Her Majesty’s Government (HMG) officials over the intervening period.
1.5 Given the very significant complexity and the implications for London’s transport system, TfL officers have been engaged in multiple collaborative clarification discussions with HMG officials. There have also been detailed discussions on multiple elements of the proposal, some of which are still ongoing.
1.6 At the time of writing, TfL does not have a final draft proposal from HMG. Therefore, it is not possible to recommend a proposal to the Board at this time.
It appears no official comments yet from either TfL or DfT, but various commentators (who might have contacts with inside knowledge) are saying elements have been rejected.
TfL could face sharp cuts to services as funding negotiations drag on
Transport for London (TfL) has confirmed that it is rejecting the current government funding offer, while it continues to negotiate the terms of the package available.
www.ianvisits.co.uk
Transport for London (TfL) has confirmed that it is rejecting the current government funding offer, while it continues to negotiate the terms of the package available.
It was also confirmed that while there’s a risk that without an agreement, TfL would be forced to start major cuts to services to balance its finances, that is not yet expected to happen. TfL, which had been on course to break even in running costs in 2023, had its finances thrown into disarray by the pandemic, being required to provide a public transport service while its fares income that it depends on was almost entirely wiped out.
Transport for London funding runs out: TfL operating on emergency money with big cuts possible - Murky Depths
Transport for London is now using its reserves to pay for day to day operations as arguments between Sadiq Khan and Grant Shapps increase
www.fromthemurkydepths.co.uk
It is now 6 days since an extra 5 days were granted (after previous extensions) and there has been no official comments. Anyone know what is actually going on ?
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