Khan lashes Shapps for refusing to meet over TfL funding as latest deal runs out
Sadiq Khan has hit out at transport secretary Grant Shapps for refusing to meet with him over Transport for London (TfL) funding, despite the body’s latest deal running out tomorrow.
The mayor of London told a group of journalists today that Shapps had not answered formal requests for a meeting that was made two weeks ago and that the Department of Transport had pulled out of 20 meetings with TfL officials “without any good reason”.
Shapps said this was “another misleading claim from the mayor as he continues to bury his head in the sand” and that “Department for Transport officials have met TfL on a regular basis to try and agree this deal”.
Khan warned once again that the cash strapped transport body is in danger of “managed decline” without a long-term deal, which would include cuts to bus and Tube services.
TfL said in its most recent budget that up to 20 per cent of bus services and up to 10 per cent of Tube services could be slashed, along with “permanent road and tunnel closures”.
The mayor said the Department for Transport has today contacted TfL about further funding, but that “at best it would be an extension by a few weeks rather than the long-term deal needed”.
“As a direct result of the stringent conditions placed on TfL, as a part of previous emergency funding deals, it’s been forced to consult on cutting 4 per cent of London’s bus network,” Khan said.
“TfL moving into managed decline would result in up to a million fewer journeys made on TfL services every day. It would lead to gridlocked roads as people turn to their cars and an increase in toxic air pollution.
“I call on the Prime Minister and transport secretary to stop playing politics on an issue of such national importance.”
In response, Shapps said: “After committing to explore a long-term settlement in February, TfL and the mayor agreed to provide information that would sufficiently demonstrate that conditions outlined in the current settlement are on track.
“Despite the mayor repeatedly calling on the Government to deliver a long-term deal he has once again failed to fulfil his side of the bargain and provide the vital evidence required to progress talks. Thereby preventing a deal which would not only represent value for money for all taxpayers but deliver for London at this crucial time.”
TfL has received almost £5bn in government funding in the past two years, after Covid decimated the transport body’s revenues.
The capital’s system is unusually reliant on fare revenues compared to other global cities, meaning it was more heavily affected by the almost total collapse of passenger revenues.
The government is asking TfL to come to the table with ways to cut expenses. Whitehall officials have said that without a serious restructure they will not give the transporty body a long-term deal.
One measure being pushed in the Department for Transport is for Khan to cut the TfL’s pension scheme, with the mayor forced to carry out a review of this potential measure.
“The government placed 60 commitments on TfL. All 60 have been reached and addressed by TfL, including undertaking an independent pension review,” Khan said.
“I’m not persuaded there’s any grounds to change the pensions of TfL. It’s for the government to make that case.”
Groups such as London First, the Centre for London and the boss of property company Derwent London have written to Shapps to call for the government to “leave no stone unturned in reaching a lasting and sustainable settlement” with TfL.
“At a time when many competing capital cities and commercial hubs across the world are stepping up their long-term investment, London – a ‘shop front’ for international investment – should benefit from sustained investment and financial support,” they said.