London’s transport system gets £1.6bn bailout from govt, but…

Despite securing a £1.6bn bailout from the UK government on Thursday; Transport for London (TfL) has said it is facing a £3bn finance gap this year owing to the coronavirus pandemic.

TfL which agreed the bailout deal to keep the business running until October has reported a 90% fall in income as journeys on public transport in London have dried up during the nationwide lockdown.

TfL said on Friday: “In recognition that the current circumstances are likely to present ongoing financial challenges, a combination of future measures from TfL, Greater London Authority and the government will be implemented to enable TfL to maintain essential services and deliver a revised balanced budget over the remainder of the financial year.”

Lockdown measures have resulted in a 95% fall in journeys on the underground and an 85% fall in journeys on London buses, said TfL.

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“It is expected that the recovery will take some time and that passenger income will continue to be severely impaired after the strict response measures are gradually eased,” it added.

London mayor Sadiq Khan is now expected to restore full bus and train services, having warned they would be cut further without emergency state support, owing to the coronavirus epidemic.

TfL informed the London Stock Exchange on Friday that “an extraordinary funding and financing support package has been agreed between TfL and the Department for Transport to contribute towards TfL’s forecast funding shortfall.

“The funding package is based on the assumption that the funding shortfall will be £1.6 billion ($19.2, 1.8 billion euros) for the period 1 April 2020 to 17 October 2020.”

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