Revealed: TfL forced to hike fares by six per cent due to terms of government deal
Mayor Sadiq Khan has today announced an almost 6 per cent hike in TfL fares due to the terms of last year’s central government bailout of the network.
Khan said there was “no viable alternative” to “plug the gap” left by central government funding.
The Mayor is able to top up local Council Tax with what is known as a precept, which sits atop taxes set by individual councils.
This year Londoners in an average band D property will be hit with an extra £20 bill for transport, a £15 bill for the Met Police and an additional £3.55 for the London Fire Brigade. That combines for a £38.55 increase to the average household’s bill.
Separately, TfL fares will go up by an average of 5.9 per cent across buses, tube and rail.
Khan was obliged to hike TfL fares by the same amount as national operators as part of the conditions around the TfL bailout deal last year.
Proposed Bus and tram fares
| Current | March 2023 | Increase | |
| PAYG – single | £1.65 | £1.75 | 6.1% |
| PAYG – daily cap | £4.95 | £5.25 | 6.1% |
| 7 Day Bus & Tram Pass | £23.30 | £24.70 | 6.0% |
City Hall is also required by that deal to raise over £500m a year from additional sources as a condition of the vital funding to keep the capital’s transport network running.
The Mayor of London, Sadiq Khan, said: “The last thing I want to do is increase council tax at a time when many household budgets are stretched, but the Government’s refusal to provide the funding our city needs means I’ve been left with no viable alternative but to help plug the gap by raising council tax by £3.21 a month. This will ensure we can protect and further improve our vital frontline public services, including the police, transport and the London Fire Brigade.”
The Mayor has consistently criticised Whitehall for a lack of funding for what remains the country’s economic engine.
“This is a challenging time for our city, with a Government that is not fully funding our public services, but I’m determined to step up so that we can continue building a greener, safer and fairer London for everyone,” Khan said.
Figures from City Hall last year suggested London has received £76 per person from a series of Levelling Up initiatives worth billions of pounds, which is well below the England average of £384 per person.