As the monopoly provider of transport in London, our strong and predictable revenue streams have proven resilient over time. We have benefited from consistent revenue growth, and forecasts show this trend is likely to continue.
We are developing new and innovative ways to supplement the revenue from transport operations. We plan to use our land for property development, make full use of our valuable advertising estate and develop the retail spaces at stations and on high streets.
For 2015/16 our revenues were £5.3bn. They are expected to have risen to £5.4bn in 2016/17.
Our grant and borrowing limits are set by Government as part of its Spending Review.
The transport infrastructure provided by us is fundamental in supporting London and the UK economy, and we believe the Government has a strong incentive to continue to improve the quality of the Capital's transport network over the long term.
Since April 2013, a portion of our central government grant has been replaced with a share of London's business rates. The remainder of the central government grant has continued to be paid by the Department of Transport via the Greater London Authority (GLA).
Since April 2017, a further portion of the central government grant has been replaced by a share of London's business rates. This is part of a pilot introduced by the Government in advance of the wider changes to the Business Rates Retention Scheme. The investment grant of approximately £1bn per annum, previously paid by the Department for Transport, will be replaced with an equivalent amount of business rates and will be paid directly by the GLA.
A smaller portion of funding will continue to be paid by the Department for Transport until 2019/20.
More details of our funding settlement can be found in our latest funding agreement letter dated 27 March 2017, covering the period 2017/18 to 2020/21.
Our diverse portfolio of borrowing is governed by the Local Government Prudential Borrowing Regime. Incremental borrowing limits are set by the Mayor of London every year and are agreed with the Government as part of the Spending Review.