We're funded from 4 main sources:

    • Fares income - this is the largest single source of our income
    • Other income, including advertising income, property rental and income from the Congestion Charge
    • Grant funding from the Department for Transport (DfT) and Greater London Authority (GLA), and Crossrail funding which in earlier years included grant from the DfT, GLA funding financed through the Crossrail Business Rate Supplement, and in 2017/18 is largely funded through the Community Infrastructure Levy and developers' contributions
    • Borrowing and cash movements

    TfL sources of cash 2017/18

    Sources of TfL funding 2017/18 Breakdown of how we are funded

    Fares income (£4.8bn)

    Fares are the single largest source of our income (47% in 2017/18), and help to cover the costs of operating and improving our transport services. The decisions on fares are taken each year by the Mayor.

    TfL fares are frozen for the length of the Mayor's terms so Londoners pay no more in 2020 than today. All TfL fare concessions are staying in place.

    Other income (£1.1bn)

    In addition to fares income, we generate income from the Congestion Charge and road network compliance charges. We also generate income from advertising, property rental, and property sales and development, the sale and leaseback of 55 Broadway and the sale of commercial sites at new Crossrail stations.

    We take advantage of commercial development opportunities such as 'click and collect' at stations as well as third-party sponsorship for the Cycle Hire and the Emirates Air Line. Other income makes up 11% of our funding in 2017/18.

    Grants & Crossrail funding (£2.6bn)

    Grants make up 23% of our funding in 2017/18 (£2.35bn) and are received from central and local government. The main sources are:

    • The DfT general grant which partly covers our operating costs. 2017/18 is the last year we will receive this grant
    • DfT investment grant which is used solely for capital improvements to relieve congestion, improve reliability on key routes and provide a good fit with UK transport policies. Central government has provided a funding commitment to 2020/21
    • Business Rates Retention, which is funded from a proportion of local business rates and paid to us from the GLA. Introduced in 2013/14, this replaced a share of the grant previously paid as the DfT general grant
    • Other funding includes capital grants, principally for the Northern line extension. This is provided by the GLA and financed from incremental business rates generated and retained within a new enterprise zone, and developers' contributions, raised by Wandsworth and Lambeth boroughs Other funding also includes the GLA precept - this is funded from local Council Tax receipts and is set annually by the Mayor

    Crossrail funding of £216m in 2017/18 funds the project to build the infrastructure for the Elizabeth line. It is the responsibility of Crossrail Ltd, a wholly-owned subsidiary of ours. Funding for it makes up 2% of our income. The project is jointly sponsored by us and the DfT.

    We provide funding to the project as well as the DfT, GLA, through the Community Infrastructure Levy and developers' contributions, and from surplus land and property development income, which is expected towards to the end of the project.

    Borrowing & cash movements (£1.7bn)

    We borrow from a variety of sources using a combination of mechanisms, including bonds, commercial paper, loans for specific projects from the European Investment Bank and the Public Works Loan Board. It makes up 17% of our 2017/18 income.

    Borrowing is in line with the Chartered Institute of Public Finance Accountancy Prudential Code and must stay within the authorised limit for external debt at all times. The amount that we can afford to borrow is linked to both recurring annual income and cash available to pay financing costs.

    The Government has offered us increased flexibility so we are now in a position to borrow as and when we require funding. This will mean a savings on debt financing costs.

    Incremental borrowing is in line with the amount agreed with Government as part of the 2015 Spending Review, and will be used to fund capital investment projects, including new rolling stock, station and line upgrades and new cycling infrastructure.