Transport for London (TfL) has confirmed that it will deliver the full programme of improvements and vital infrastructure renewals for London in 2024/25 as set out in its recently published Draft Business Plan.
While recovering ridership and other factors will mean that TfL is predicted to have a more significant surplus and better access to any new borrowing needed in future years, it is now finalising plans with Siemens Mobility to rephase some payments under the contract. This rephasing does not affect the delivery of the first train in 2024 for testing in London before entering service in 2025. It will also protect the planned Piccadilly line timetable uplift in 2027 – meaning that Londoners will still benefit from the new, higher capacity walk-through trains.
Places for London, TfL’s financially independent property company, will continue to deliver a range of schemes across London and has identified capacity for 20,000 new homes focusing on affordable housing, including at Wembley, Kidbrooke and Barkingside. It will also continue to invest in its existing workspaces, shops, and arches, making them greener, safer, and more accessible to help businesses go further and deliver several sites for electric charging hubs. These support London’s economic growth and provide vital and sustainable revenue to reinvest in public transport.
Andy Lord, London’s transport commissioner, said: “Through a huge effort to reduce costs and rebuild our ridership and revenue following the pandemic, TfL is now on track to be financially sustainable in terms of our day-to-day operations. We are also able to cover the cost of the majority of our capital investment.
“Following the confirmation of £250m in Government support for our capital investment programme, we have had to make difficult decisions about our business plan to ensure we can continue to deliver our vital programme of improvements. In order to achieve this, we are now finalising plans to rephase the timing of payments under the contract with Siemens Mobility, who are delivering the new walk-through and more energy-efficient Piccadilly line trains that are currently under construction. This rephasing is not something we would have chosen to do, but we have ensured that it does not impact when the first new train will arrive in London for testing, nor the planned timetable uplift in 2027.
“While we can now deliver our full Business Plan for 2024/25, our shortfall in Government capital investment has only been mitigated in the near term and will reduce the amount of valuable investment we can make in future years unless further funding is agreed. We, alongside London’s business stakeholders and others, will continue to make the case that ongoing Government support for capital investment in transport is needed if we are to be able to continue to deliver vital improvements to London’s transport network, unlock new homes and support growth across London and the UK.”
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