London’s bosses call on Khan and Shapps to fix ‘broken’ transport system
The capital’s business leaders have called on Sadiq Khan and Grant Shapps today to fix London’s ‘broken’ transport system.
The top signatories included bosses of Canary Wharf, Arcadis, the ExCeL and the New West End Company, who all signed off on the joint letter to the Mayor and Transport Secretary.
The letter follows months of political jousting between City Hall and the government over billion pound bailouts to cover the cost of lost ticket revenue over the pandemic.
Now the election is over, work can be done towards ‘longer-term issues’ like setting up a ‘sustainable funding deal’ for Transport for London.
“London does not work without public transport,” the letter wrote, adding that because of public transport, the capital accounts for 24 per cent of UK Gross Value Added (GVA) and makes a net contribution of £39bn to the Treasury a year.
“This is not just about running public transport services. TfL is an integrated city-wide transport authority and, as a result, it has been able to take a strategic view of the transport needs of the city and develop long-term investment plans.”
However, the pandemic has deteriorated the ‘already strained funding model’ while the letter warned that the gains made since the creation of TfL will be ‘undone’.
Infrastructure investments
With passenger trends ‘constantly evolving’ and the ‘scale of the climate emergency’ being realised, more public transport is required and it needs to be ‘cleaner’.
Infrastructure investments and operational adjustments could enable these new technologies, but these would require a funding model that will live past the 2030s.
The current TfL funding package, which was agreed in March and runs out on 18 May, will need a rollover in the short-term to ensure that under-funded transport services do not inhibit London’s recovery, the letter added.
“As business leaders in London, we are ready to work constructively with central and London government, to identify solutions for the good of the city, the national economy, and the planet.”
A spokesperson for the Mayor said: “This pandemic has been devastating for TfL’s finances. Securing a long-term funding settlement for the capital’s transport network is not only vital for London’s businesses and our prosperity but will be a key driver in the recovery of the UK economy.
“The Mayor is fully committed to putting politics aside and working closely with ministers over the coming days to agree funding for TfL. Putting TfL on a sustainable financial footing after Covid-19 is simply in everyone’s interest.”
Meanwhile, a government spokesperson said: “This government has kept London’s transport network moving with more than £3bn in emergency funding since the start of the pandemic. Ensuring value for money for taxpayers has been at the heart of our approach.
“Future funding packages will seek to move TfL onto a more financially sustainable footing”.