Skip to content
Thursday 27 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE · FR
MorningWire

European business, markets and politics

FTSE 100
10,792.54
-0.79%
DAX
26,367.24
+0.31%
CAC 40
8,319.87
-1.68%
STOXX 50
6,424.73
-0.71%
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
More
GermanyFranceEU InstitutionsCompetitionPublic AffairsBankingTechnologyEnergy
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
  • DE
Thursday 16 December 2021 7:01 am  |  Updated:  Thursday 16 December 2021 7:23 am

Sadiq Khan hikes council tax as the government refuses to ‘properly fund’ London’s public transport

By: Leah Montebello

Add as a preferred source on Google
(Photo by Dan Kitwood/Getty Images)

London Mayor Sadiq Khan has announced plans to raise council tax by around £20 a year as the Government refuses to “properly fund” Transport for London (TfL) operations. 

Khan saidlast night he has been “forced down this route” due to a lack of a long-term agreement with the Government, with a three-year tax hike set to raise £172m annually for the city. 

The Department for Transport has previously insisted it has “repeatedly shown its commitment” to supporting TfL during the pandemic by providing “more than £4bn in emergency funding”.

Despite these measures, the Labour mayor said a “managed decline” of TfL will still be required, involving “significant cuts” to bus and Tube services.

Khan reiterated his call for the Government to “give back the £500m Londoners pay every year in Vehicle Excise Duty”, which is “currently used almost entirely to maintain roads outside London”.

He added that the pandemic is the “sole cause” of TfL’s financial problems.

Meanwhile, the Mayor plans to increase the age of eligibility for free travel using the 60+ pass by 10 per cent each year over the next 12 years.

He is also proposing to scrap cheaper off-peak fares for Tube journeys between Zone 1 and Heathrow, and raise the cost of an Oyster card deposit from £5 to £7.

A previous funding agreement between the Government and TfL was due to expire on Saturday , but was extended until tomorrow

Read more

Tory and Labour councillors spar over £300m Hammersmith Bridge plans

Hammersmith Bridge spanning the River Thames, surrounded by lush greenery and clear blue skies, capturing its iconic archi...

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Politics

Related Topics

  • Transport for London

Trending Articles

  • Pensioners to hand over bank statements in government benefits crackdown

  • Andy Burnham hints at tax rises in Autumn Budget

  • Brewdog founder James Watt hits out at ‘total silence’ over new venture

  • Lloyds Bank and Halifax users unable to use app in latest outage

  • Economists urge Bank of England to halt bond sales as borrowing costs climb

More from Morning Wire

  • Tory and Labour councillors spar over £300m Hammersmith Bridge plans

    Politics
    Hammersmith Bridge spanning the River Thames, surrounded by lush greenery and clear blue skies, capturing its iconic archi...
  • Row erupts over Tory plan to stop Soho pub goers standing up 

    Hospitality
    Bustling Soho street scene with vibrant storefronts, diverse pedestrians, and iconic London architecture under clear skies
  • West Ham: Staveley receives Sadiq Khan encouragement to buy London Stadium

    Sport Business
    Low-angle view of a football stadium from the pitch, showing the corner marking and empty seats under a blue sky
  • Why did Pinterest choose Oxford Street for its new HQ?

    Opinion
    Gregory Owens and Sadiq Khan, London Mayor, stand smiling in a gallery with various framed images.
  • Burnham to hand mayors power to overrule local councils’ planning decisions

    Politics
    Andy Burnham speaking at a press conference, wearing a suit and tie, addressing current political issues in Manchester.
  • Hammersmith Bridge is a test for Burnham’s place-based growth

    Opinion
    Hammersmith Bridge closed in 2021 with fencing, banners, and traffic cones blocking access to the walkway.
  • Can John Healey deliver Burnham’s make-or-break devolution agenda?

    Economics
    John Healey, in a red tie, speaking with Andy Burnham, wearing glasses and a dark blue jacket, outdoors.
  • Burnham urged to axe tourist tax expansion in devolution drive

    Hospitality
    Andy Burnham, Mayor of Greater Manchester, speaking outdoors with a lapel microphone on his suit jacket.
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • EU Institutions
  • Europe

Business

  • Markets
  • Business
  • Economy
  • Regulation
  • Competition
  • Public Affairs

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook