Coronavirus: TfL set to lose £500m from decline in passengers
Transport for London (TfL) is expecting to lose up to £500m from the impact of coronavirus and will ask the government for financial support.
In the past week, passenger numbers on the Tube were down by 19 per cent year-on-year, while bus passenger numbers fell by 10 per cent.
The transport body said the figures were due to “greater numbers of people working from home” and a reduction in the numbers of visitors to London.
A £500m reduction in passenger income could put a strain on TfL’s finances, which has accumulated an estimated £11bn in debt.
However, the transport body said in a statement that it expects to have an end of year cash balance of £2bn and that it will be “able to manage the initial impact of Covid-19”.
However, TfL’s chief financial Simon Kilonback still said the body will be asking central government for financial relief to cope with the losses.
“We manage our finances prudently, and have reduced our deficit hugely in recent years,” he said.
“This means that we can manage the impacts on our passenger numbers and finances that are currently envisaged.
“But, given the nature of the situation, we will be looking to the government to provide appropriate financial support.”
Kilonback added that there was “no specific risk” of contracting Covid-19 on public transport.
He added: “We’ve also stepped up our cleaning regime from the already very high standards to give our customers and staff further reassurance.”
In November, TfL reported that it had a budget deficit of £111m in the first half of 2019-20 – a deficit reduction of 40 per cent compared to the same period in 2018-19.
The figures drastically beat expectations as TfL had budgeted for a £372m deficit for the period.
The financial strain has come down to several factors, including a £700m annual reduction in government funding, a loss of poten tial income from Sadiq Khan’s Tube fare freeze and declining bus passenger numbers.
It has also had to deal with Crossrail budget blowouts.