The UK Government has entered an agreement with Transport for London (TfL) on a new longer-term funding settlement, helping support almost £3.6bn of critical infrastructure works.
The final extraordinary funding settlement lapsed on 3 August, while a new settlement has been agreed until 31 March 2024 or until TfL achieves financial stability.
As part of a longer-term settlement, more than £1.1bn of additional funding will be available for London transport.
The settlement is anticipated to ‘revolutionise travel across the capital’.
It will support key upgrades, including new Piccadilly line trains and the modernisation of the District, Metropolitan, Hammersmith, and City and Circle lines.
The settlement also enables the repair of Hammersmith Bridge, as well as improve Elephant and Castle station and a London Overground extension between Gospel Oak and Barking Riverside to serve over 10,000 new homes in east London.
Under the settlement, the mayor will work to launch driverless trains on London Underground, in use on the Dockland Light Railway for over 35 years.
This settlement needs ‘Transport for London to modernise and control its operating costs, to make it a modern, effective, efficient and financially stable operator.’
The government is providing settlement in addition to more than £5bn of funding delivered to TfL since the onset of the pandemic and the government’s pledge to offer over £1bn per annum until 2025 for London transport via business rates retention.