The government has agreed to a £1.6 billion bailout package for Transport for London (TfL) to keep Tube and bus services running until September.

It comes after Mayor Sadiq Khan warned the body was close to running out of money.

At today’s Downing Street press briefing, Transport Secretary Grant Shapps said he was ‘optimistic’ of finding a solution the deal was announced.

The deal breaks down as £1.1bn in cash and a £505m loan, The Daily Mirror reports. The government has also made a number of demands in return for the funding, including the return of 100% tube services.

They also want any absences reported direct to the government, a review of TFL finances and officials will sit on TFL board.

London’s Underground network saw a 95% decline in passenger numbers as a result of coronavirus lockdown, while bus usage dropped by 85%.

On Thursday, Mayor of London Sadiq Khan warned that TfL would need to reduce services unless an agreement was reached by the end of the day

The reduced service has caused concern this week as people were encouraged to go back to work. The government has been criticised for encouraging people to avoid public transport when many people in London don’t own a car or live too far away from their places of work to walk and cycle.

Earlier, the transport minister indicated tube and bus fares in London would rise as part of a coronavirus government bailout.

Mr Khan has frozen single fares on the London Underground, buses, DLR and trams since he became mayor in May 2016.

But speaking at today’s press briefing, Mr Shapps said it was ‘very important’ that as part of a rescue package ‘we don’t end up in a situation where people from outside the capital are unfairly carrying the burden’.
He warned that consistent fare freezes mean ‘more money isn’t going into the system’ stating: ‘You can’t then have an unfair settlement, where other British taxpayers are effectively bailing out the system.’

More to follow

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