As Transport for London (TfL) marks its twentieth anniversary, it faces two existential challenges: an unprecedented reduction in passenger numbers during lockdown and, largely as a consequence of this, a collapse in revenue.
Unlike other regions of the UK, millions commute in and out of London on a daily basis and the city relies much more heavily on public transport than anywhere else in the country. Only 3 in 10 Londoners drive to work – less than half the rate of any other region in the UK. This means that London’s economy will not fully recover without a return to public transport.
However, even before Covid-19 struck, there was a structural weakness at the heart of London’s devolution settlement. London’s public transport is more dependent on fare revenue than any major city in the world, so losing 90% of this income overnight was always going to require central Government intervention. At the same time, while TfL has responsibility for the operation of London’s transport network, it does not have the resources or powers needed to fund this over the long term. As the Mayor of London pointed out when TfL received its first bailout from Whitehall in October (now extended until March) a sustainable funding model“will involve either permanent funding from Government or giving London more control over taxes so we can pay for it ourselves – or a combination of both.”