TfL Statement - TfL Funding Update (4th February)

04 February 2022
Transport for London (TfL) today issued the following update on Government funding:

A Transport for London (TfL) spokesperson said:

'We continue to discuss our funding requirements with the Government. There is no UK recovery from the pandemic without a London recovery and there is no London recovery without a properly funded transport network in the capital. It is essential London receives the sustained long-term Government funding that is vital for the coming years if a period of 'managed decline' of London's transport network is to be avoided.

'We have today (4 February) agreed with the Government that our existing funding agreement will be extended until 18 February 2022 so that these discussions can be concluded. Working together, we must achieve a longer term capital funding settlement for at least three years, that ensures London's transport network can remain reliable and efficient, can support the jobs and new homes that rely upon it and can support the economic recovery of the capital and the country as a whole. We hope these discussions can be concluded successfully soon.'

TfL provides the following information to the markets:

Government Funding Discussions

TfL announces that the current extraordinary funding and financing agreement between TfL and the Department for Transport ("DfT") has been extended to 18 February 2022.

On 1 June 2021, TfL announced that an extraordinary funding and financing support package (the "Funding Package") had been agreed between TfL and the DfT to support transport services in London and contribute towards TfL's forecast revenue loss due to reduced passenger numbers using TfL services as a result of the pandemic. The Funding Package initially provided support for the period from 29 May 2021 to 11 December 2021 and was subsequently extended.

On 17 December 2021, TfL announced that the terms of the Funding Package had been amended to extend the funding period to 4 February 2022, to allow TfL to continue discussions with the government in relation to further financial support.

Following further discussion, the terms of the Funding Package have now been amended to define the funding period as 29 May 2021 to 18 February 2022. Other provisions of the Funding Package remain materially the same, including the Top Up Grant mechanism, pursuant to the terms of the Funding Package.

The original terms of the Funding Package announced on 1 June 2021 can be found in the funding letter.