TfL given one week to accept funding settlement offer

By Joe Talora, Local Democracy Reporter

Transport for London (TfL) has been given one week to decide whether to accept the Government’s “final offer” of a long-term funding settlement.

Transport Secretary Grant Shapps last night confirmed that he had accepted TfL’s request to extend the existing £200 million bailout agreed in February until Wednesday, August 3, while officials pour over the draft long-term deal.

In order to keep bus and Tube services running for the next year, TfL requires an additional £927 million, as well as billions of pounds to deliver capital projects such as the Bakerloo line extension and Tube fleet renewals.

Without the cash it needs, London’s transport network is facing a managed decline scenario that would see bus services cut by 18 per cent and Tube services slashed by nine per cent.

Mr Byford has said he is “determined” to avoid a managed decline scenario but “not at any cost” and stressed there could be “difficult choices” to make.

Members of the RMT union have announced plans to strike on August 19 over TfL’s “refusal” to disclose details of what is included in the draft settlement, amid fears that the Government may try to impose massive cuts to jobs and pensions.

But Mayor of London Sadiq Khan has stressed that the details have only been kept private because of “market sensitive” information contained within the draft settlement.

Mr Khan has urged the union to “reconsider” strike action.

Pictured top: Sadiq Khan (Picture: PA)