Khan accused of 'failing to balance the books' after TfL's seventh bailout package

Sadiq Khan's spokesman accused Conservative ministers of a desperate attack. Photo: Victoria Jones/PA

London Mayor Sadiq Khan has been accused of «failing to balance the books» of Transport for London (TfL) after the government said it would deliver a seventh post-pandemic bailout.

On Tuesday, Mark Harper, the transport secretary, said Metropolitan Transport would receive a £250 million payment to help cover the cost of a major upgrade to London Underground.

Since May 2020, the Department for Transport has paid TfL more than £6 billion in seven different payments.

Mr Harper said: “The Government has expressed ongoing concerns about the management of TfL by this mayor and it is disappointing that London taxpayers there is a price to be paid for the poor management and decision-making of the GLA [Greater London Authority].

“Our capital deserves a mayor who can balance the books without taxing our poorest motorists. or rely on taxpayer support.»

However, a spokesman for Mr Khan hit back, saying it was a desperate attack by ministers and adding: «The Mayor and TfL have restored TfL's finances following the devastating impact of the pandemic and cover the vast majority of TfL's capital investment needs.

«Unlike the previous mayor [Boris Johnson], Sadiq is managing TfL's budget without an annual £1 billion operating grant from the government.»

The pandemic and the rise of working from home have caused TfL's fare revenue to plummet, leaving a huge black hole in its finances, and the government has issued a series of emergency payments to ensure that the organization can continue to provide day-to-day services. .

The latest payment, made in August 2022, was £3.6 billion and was due to cover the network until 31 March 2024.

The £250 million payment is slightly different because it does not could support TfL's day-to-day operations, but should be ring-fenced for projects such as the construction of new tube trains for the Piccadilly line.

Andy Lord, Transport Commissioner for London, said: “Thanks to huge efforts to cut costs and restore passenger numbers and revenues following the pandemic, TfL is now on the path to financial sustainability in terms of its day-to-day operations. We can also cover the cost of most of our capital investment.»

The £250 million is just half of the £500 million originally requested by TfL and Mr Khan, meaning that organization, perhaps to curb some other planned projects.

Mr Lord said: “We will now need to review our recent draft business plan and address the impact of the ongoing funding shortfall. This work is being carried out so that we can confirm as quickly as possible what we will deliver for London.”

Susan Hall, the Conservative Party candidate for mayor, said: “I am pleased that the Government has stepped in to ensure that we will get these upgrades despite the Mayor of London's profligate spending.

“Sadiq Khan has treated Londoners like walking ATM machines for too long, increasing taxes to fund his shoddy spending. He has left London's finances in disarray.»

Keith Prince, the Tories' spokesman for transport, said: «As chairman of Transport for London, Sadiq Khan has turned TfL into a financial basket case with more than £15 billion in debt.

“Like Transport Secretary Mark Harper, I have serious concerns about the way TfL is being run under Sadiq Khan. Due to his poor financial management, TfL went from one financial crisis to another.»