TfL will need to find an additional £600m a year in savings by 2025-26 - and it looks like fares will be going up by at least 4% until 2024.
Transport for London will need to find an additional £600m a year in savings by 2025-26, according to its draft Business Plan.TfL says it will do this by "improving efficiencies" but that services will not be cut.TfL has endured a difficult few years since the emergence of Covid. Revenue from fares plummeted as passengers stayed at home, and some are yet to return. TfL says passenger numbers are at about 80% of pre-pandemic levels.
To break even, TfL needs to encourage more passengers to use its services. However, it says the cost-of-living crisis means poorer households, renters and people with large mortgages are "more likely to make cutbacks" and may not travel as frequently. TfL's targets assume that it will take more than four years before travel returns to pre-pandemic levels.Fares may not rise as much as anticipated. Normally they rise by inflation plus 1%.
"This plan shows how we will work to achieve our vision of being the green heartbeat of London, and how we will continue on the path to financial sustainability whilst delivering real and vital improvements for the city."Separately, over £8bn will be invested in London's road and rail network. Londoners can look forward to new Piccadilly line and DLR trains, new zero-emission buses, 14km of new cycleways, and more buses in outer London.
This capital expenditure is separate from the budget for the day-to-day running of the network. TfL has other plans to improve infrastructure such as new signalling on the Piccadilly line, but it says it needs new capital funding from the government.
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