Network
Contributing Writer rail@bauermedia.co.uk
PUSHING back delivery - and therefore payments to Siemens Mobility - of new Piccadilly Line trains means that Transport for London has managed to deliver a balanced £10.4 billion budget for the 2024-25 financial year.
TfL also says it is on course to ‘break even’ operationally where the day-to-day costs of running trains, Tube, buses and cycle scheme is covered by fares and other revenue.
Approving its 2024 Business Plan, the TfL board’s three-year plan identifies a funding gap that remains for the final two years (2025-26 and 2026-27) for major capital projects.
In a letter to London Mayor Sadiq Khan, announcing that the Department for Transport will provide a £250 million major capital funding grant for the 2024-25 financial year, Transport Secretary Mark Harper re-affirmed its commitment to part-fund major capital enhancements and renewals.
This is defined as ‘big projects’ - for example, replacement of life-expired rolling stock such as the Bakerloo Line fleet, signalling and major road renewals.
Harper said TfL “is not expected to solely finance these from operating incomes, as is consistent with other transport authorities”.
In addition to the Piccadilly Line trains order, the £250m grant supports the delivery of 54 new Docklands Light Railway trains and enables TfL to complete the major signalling upgrade on the District and Metropolitan lines, increasing capacity with more frequent services.
Khan said he was “relieved” that the DfT had agreed to provide the £250m capital funding in 2024-25 and welcomed that the Government “has consistently recognised that TfL is not expected to fund major renewals and enhancements through its own operating incomes”.
At this point there is a divergence, as TfL Transport Commissioner Andy Lord makes clear in his foreword: “Thanks to our hard work, and tight financial control, we will be able to meet 75% of our capital investment needs.”
The remaining 25%, covering the Business Plan’s final two years, remains non-funded and is reliant on future government grants, with discussions expected to start in the autumn.
“Longer-term funding certainty is still needed, and we look forward to future discussions with government on this,” said TfL CFO Rachel McLean.
“We have made strong progress towards our £600m recurring savings target by 2025-26 by improving working practices, driving improvements for colleagues to make TfL a great place to work, and targeting efficiencies within our sup
