Mayor Starts Review of Funding for London’s Transport System

The Mayor of London, Sadiq Khan, announced on Wednesday an independent review of Transport for London‘s long-term future funding and financing options.

Khan said the review will be carried out by a panel with experience of public policy, government reviews and reform of public bodies, and it will run alongside the U.K. government’s previously announced review into the transport agency’s finances. It is expected to conclude in September.

Members of the panel include Bridget Rosewell, chair of Atom Bank and of the M6 Toll company, Jonathan Taylor, who was vice president of the European Investment Bank from 2013 to 2019, TC Chew, global rail business leader at Arup, and Stephen Glaister, Emeritus Professor of Transport and Infrastructure at Imperial College London.

As part of the funding agreement reached with government, the mayor and TfL agreed to a review of the agency’s future financial position and structure. KPMG will assist in the review, and will validate the financial numbers that underpin the current grant, as well as draw up “short and medium-term efficiencies” that could be introduced.

TfL has been trying to slash its operating deficit, and up until early March had been forecasting reducing its like-for-like operating deficit by 86% by the end of 2019/20 compared to the end of 2015/16.

The coronavirus has added to the challenges facing TfL, which have included the loss of a government grant and delays to its Crossrail project. TfL sought to significantly cut back public transport use due to the pandemic, and at its peak, passenger income was reduced by over 90% compared to the year before.

Khan said the coronavirus “has had a devastating effect on TfL’s finances, which rely on fare income.”

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