How much was the grant TFL had been receiving from the government and how much of this has been cut? •For how long will improvements 'be paused'? •What specifically is categorised as an 'improvement'? •Is there no working relationship between TFL and borough councils such that funding for transport improvements can be sensibly allocated and agreed upon via funds available whether that be from TFL or the council?

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TfL Ref: FOI-2868-1819

Thank you for your email received by Transport for London (TfL) on 25 January 2019.

Your request has been considered in accordance with the requirements of the Freedom of Information Act and our information access policy.  I can confirm we do hold the information you require. You asked:

How much was the grant TFL had been receiving from the government and how much of this has been cut?

TfL has had unprecedented cuts to its operational funding from the government over the last five years, with an average reduction of £700m per annum. Since April 2018, TfL has become one of the only transport authorities in the world not to receive a direct government operational grant for day to day running costs. The detailed operating grant figures are published in TfL’s Business Plan. Please refer to page 49 of the published report available on our website at http://content.tfl.gov.uk/tfl-business-plan-2019-24.pdf

For how long will improvements 'be paused'?

In our Business Plan, we set out a comprehensive programme of investment across London, to deliver safe and reliable transport services and continue to deliver the Mayor’s Transport Strategy. However, we need to adjust our plans to reflect the financial impact of prevailing economic conditions and the delay to the opening of the Elizabeth line.

We have no certainty of capital funding beyond 2020, and over the next twelve months we will be making the case to the government for confirmed capital support to enable these critical projects. At the same time, we will continue our successful programme of cost reduction across our organisation, and work to create new revenue streams.

The length of time an enhancement project may be deferred for is dependent on availability of funding, although we will be making the case over the next 12 months for confirmed capital support from the government. TfL’s Business Plan covers the time frame from 2018/19 to 2023/24. If no funding from any sources were to become available, those enhancements that have been deferred would be deferred until after 2023/24.

What specifically is categorised as an 'improvement'?

TfL categorises its Capital expenditure between renewals and enhancements, as displayed in the various tables in the Business Plan.

Renewals are defined as expenditure to carry out capital renewals of our existing, and growing, asset base in order to continue to deliver safe and reliable services.

The definition of “enhancement” is therefore any Capital Expenditure which is not a renewal, i.e. which enhances some aspect of service provision.

Please note not all of TfL enhancements are deferred awaiting funding. The Business Plan references key schemes that are deferred. Please see page 10.

Is there no working relationship between TFL and borough councils such that funding for transport improvements can be sensibly allocated and agreed upon via funds available whether that be from TFL or the council?

On the contrary, TfL seeks good working relationships with, and support from, London boroughs, communities and other partners.

We are committed to working in close partnership with the newly elected and re-elected borough administrations, as well as the City of London Corporation to understand their priorities.

We have made a commitment to work more closely with the boroughs and local communities to have a better understanding of the priorities so more people have an opportunity to get involved in creating plans. From holding regular meetings with elected members and transport officers, to attending a wide variety of neighbourhood forums and community group events, we want to connect the local conversations back into our business. London boroughs have told us that they need stable, long-term funding to be able to plan properly and deliver effectively. The Business Plan maintains overall borough funding at the levels of our previous plan.

We are working with the boroughs, on the development of their Local Implementation Plans, which will include actions to reduce traffic in their local areas, as well as in many other ways mentioned in the Business Plan.

TfL has had unprecedented cuts to its operational funding from the government over the last five years. This is in addition to managing a number of financial challenges; i.e.  a subdued economy has slowed down ridership and reduced fare revenue, a trend affecting the country. Whilst TfL’s overall fares revenue is just above forecast for this year, since the 2016 Business Plan the five year forecast is approximately £2.1bn lower than expected, due to the wider state of the economy.

The recent announcement by Crossrail Limited that there will be a delay to the opening of the Elizabeth line has also meant that TfL needs to pay for the additional capital investment, as well as absorb the impact of lost fare

revenue. As a result it has not been possible to fund every desired project and difficult choices have had to be made.

If this is not the information you are looking for, or if you are unable to access it for some reason, please do not hesitate to contact me. Please see the attached information sheet for details of your right to appeal as well as information on copyright and what to do if you would like to re-use any of the information we have disclosed.

Yours sincerely

Eva Hextall

FOI Case Officer

FOI Case Management Team

General Counsel

Transport for London

How much was the grant TFL had been receiving from the government and how much of this has been cut?

•For how long will improvements 'be paused'?

•What specifically is categorised as an 'improvement'?

•Is there no working relationship between TFL and borough councils such that funding for transport improvements can be sensibly allocated and agreed upon via funds available whether that be from TFL or the council?

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