Chair of Transport for London (TfL) Board and the Mayor of London, Sadiq Khan, today announced that an independent panel of experts has begun a review of TfL’s long-term future funding and financing options.
The review will be carried out by a panel with substantial experience of public policy, Government reviews and reform of public bodies. It will grow options for TfL’s long-term future funding and financing models that would allow TfL to bring the right services for London, invest in new and existing infrastructure and contribute to London’s development and sustainability.
Their work will be carried out in parallel with the previously announced Government review of TfL’s finances, and is expected to conclude in September. No bounds have been set out on the extent of the review, and the panel is entirely independent from both TfL and the Greater London Authority.
The member of the panel includes:
TC Chew, Global Rail Business leader at Arup, Chartered Engineer and a Fellow of the Royal Academy of Engineering;
Stephen Glaister CBE, Emeritus Professor of Transport and Infrastructure at Imperial College London, a member of the Board of TfL 2000 to 2008 and member of the 2019 Oakervee Review of HS2;
Bridget Rosewell CBE, Chair of Atom Bank and of the M6 Toll company and a Commissioner for the National Infrastructure Commission;
Sir Jonathan Taylor, Vice President of the European Investment Bank from 2013 until 2019.
Previous to the coronavirus pandemic, TfL had attained significant progress in minimising its operating deficit, despite noteworthy challenges, while still bringing a wide range of improvements to the Tube, bus and rail network during the last financial year.
TfL played their part in helping to tackle the virus and significantly reduce public transport use. This contributed towards less cases but at its peak, TfL's passenger income was reduced by more than 90 per cent compared to last year, and this has required Government support to ensure transport services in the capital continue to operate effectively.
Sadiq Khan, Mayor of London, said: "London's public transport network is central to life in our city and will be essential to our recovery. Despite TfL's strong financial position going into this pandemic, Coronavirus has had a devastating effect on TfL's finances, which rely on fare income.
“Despite the huge strides made in reducing TfL's operating deficit over the past few years it is clearer than ever that the current funding structure is not fit for purpose. It is vital that we find a new solution to support not only London but the wider economy, so I am really pleased that an independent panel of experts will review TfL's long-term funding and financing options."