Commons Sense

House of Commons · Ministers' Questions

TfL Funding: Discussions with Mayor of London

Thursday 16 December 2021 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 2 Not answered 0

Key points

  • Ministers and officials in the Department for Transport regularly meet officials from Transport for London and the Mayor's office to discuss funding issues.
  • The Government requested clarification on points outlined in an agreement regarding TfL funding after receiving the letter three weeks late.
  • There has been about 9.6 billion of waste in TfL finances since 2016, including 5.2 billion overruns on Crossrail and a 828 million pensions cost.

Topics (select to filter)

Questions & Answers

Q1 Matthew Pennycook Lab Greenwich and Woolwich
Transport
Context

TfL faces financial difficulties due to the pandemic, with demand for public transport declining. The question arises from a lack of agreement on funding settlement.

Question

If he will hold discussions with the Mayor of London on Transport for London's funding. The move to plan B this week has seen bus travel demand in our capital fall by 9% and tube travel demand by a staggering 29%, leaving both still well below pre-pandemic levels. TfL's financial problems are a direct result of the national effort against coronavirus.

Answer from Grant Shapps

Ministers and officials in the Department for Transport regularly meet officials from Transport for London and the Mayor's office to discuss a range of issues around funding for Transport for London. Most recently, Baroness Vere met Heidi Alexander on 2 December. It does not seem particularly vindictive to pay out £4.1 billion in support of TfL as it rightly battles its way through coronavirus.

Partly answered

Not addressed: The questioner asked for the Secretary of State to put aside political considerations and address TfL's collapse, which was not directly addressed.

How: I Am Afraid That I Do Not Recognise The Hon. Gentleman'S Description Of The Situation.

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Q2 Matthew Pennycook Lab Greenwich and Woolwich
NHS Transport
Context

Passenger levels have dropped by over a quarter due to Government advice, impacting TfL's revenue. The question arises from concerns about political manoeuvres against TfL.

Question

Yet again, the Government seem to be engaging in a blatant act of political sabotage of London's vital transport networks. This week, Londoners have listened to Government advice, done the right thing and worked from home to keep our NHS and communities safe. As a result, passenger levels have dropped by over a quarter, which has had a further colossal impact on TfL's revenue.

Answer from Grant Shapps

The letter that I received with the measures that the Mayor had to meet, which were outlined in an agreement, arrived on my desk three weeks late. Not unreasonably, on behalf of the taxpayer, I went back to him and asked him to clarify some of those points.

Not addressed: The questioner asked for a direct meeting with the Mayor of London to address TfL's funding issues.

How: It Is Interesting That The Front-Bench Team Have Taken Their Briefing Directly From The Mayor Of London.

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Q3 Sam Tarry
Transport
Context

TfL has received substantial loans and bailouts since 2018, raising questions about government support.

Question

As the Rail Minister in 2018, long before covid, I remember that my negotiations with the Mayor of London resulted in a loan of more than £2 billion for TfL. I am aware of further loans and bail-outs since. Does my right hon. Friend agree that it is simply wrong to say that TfL has not been supported by the Government?

Answer from Grant Shapps

My hon. Friend, a former Transport Minister, is absolutely right. There has been about £9.6 billion of waste in TfL finances since 2016. Crossrail is £5.2 billion over—it was on time and on budget when the Mayor took office; there is the pensions cost of £828 million; the failure to raise the fares while the rest of the network had to, which cost £640 million; and another £400 million of combined fare dodging.

Answered

Not addressed: null

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Q4 Andrew Jones Con
Transport
Context

TfL faces financial difficulties due to the pandemic, with demand for public transport declining. The question arises from a lack of agreement on funding settlement.

Question

The move to plan B this week has seen bus travel demand in our capital fall by 9% and tube travel demand by a staggering 29%, leaving both still well below pre-pandemic levels. TfL's financial problems are a direct result of the national effort against coronavirus. The failure to agree a funding settlement will not only decimate services for Londoners, but put at risk the entire country's economic recovery.

Answer from Grant Shapps

It does not seem particularly vindictive to pay out £4.1 billion in support of TfL as it rightly battles its way through coronavirus. The hon. Gentleman accuses us, as other Opposition Members have, of playing politics with this issue, which is completely untrue.

Partly answered

Not addressed: The questioner asked for the Secretary of State to put aside political considerations and address TfL's collapse.

How: It Does Not Seem Particularly Vindictive To Pay Out £4.1 Billion In Support Of Tfl As It Rightly Battles Its Way Through Coronavirus.

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