Transport for London faces funding battle

Transport for London, the British government's initiative to provide better public transport in the nation's capital, is facing funding issues as mayor Sadiq Khan warns that bus and train services could be slashed if the government don't provide a £4.9 billion stimulus package to the indsutry.

The mayor warned the Department of Transport that he was ready to defer London's transport sector to "section 114," the transport industry's equivalent to filing for bankruptcy.

Section 114 is a drastic measure and has only happened once in the last few decades.

This would result in tighter regulations and cuts to many aspects and services for TfL.

This plea was met with a response from Prime Minister Boris Johnson, who accused the Opposition mayor of "bankrupting London transport."

Johnson said: “The current mayor of London had effectively bankrupted TfL before coronavirus had even hit.

“Any expansion of the congestion charge or any other measure taken to improve the finances of TfL are entirely the responsibility of the bankrupt current mayor of London."

Fewer services would mean transport is overcrowded during a pandemic, Khan pointed out.

Speaking on LBC Radio on Wednesday, the mayor said:

“If a deal isn’t done, TfL will have no choice but to reduce the services we provide to make sure we can pay our bills and that means fewer Tubes running, fewer buses running, fewer trams running, fewer Overground trains.”

The government gave a stimulus package for London's transport sector back in May, totalling roughly £1.6 billion, with a condition that Tube and bus services return to normal working levels.

Local authorities were considering expanding the London congestion zone, alarming Conservative MPs in the city.

Critics have also pointed out that Khan's policy of freezing the Tube has cost at least £460 million in lost fare revenue.

However, the FT reports that TfL has also lost an annual government grant for the service, which amount to as much as £700 million back in 2015.

At a TfL board meeting on Wednesday, Khan said: “Now is not the time for the government to play party political games or be vindictive towards London, this is far too serious a matter. I intend to stand firm and fight for a fair deal for Londoners.”

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