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DfT agrees to new bailout funding package for TfL, UK [free access]

June 2, 2021

The Department for Transport (DfT) has agreed to a third bailout funding package for Transport for London (TfL) to ensure continuous operation of public transit systems despite the ongoing COVID-19 pandemic. The new bailout package is valued at GBP1.08 billion. The package will provide financial support till December 11, 2021.

 

As a part of the agreement, the London City Hall has agreed to deliver GBP300 million in savings or provide new income sources in the 2021–2022 period, to prepare a plan to accelerate the TfL’s existing GBP730 million modernisation programme by April 2023, and to identify new or increased sources of revenue for the TfL ranging between GBP0.5 billion and GBP1 billion each year beginning in 2023.

 

In addition, the DfT has also agreed to fund the repairs to Hammersmith Bridge in London that has been closed for nearly two years now. The DfT plans to draw up a memorandum of understanding (MoU) between the Government of the UK, the TfL, and the London Borough of Hammersmith and Fulham to fund the opening of the bridge to pedestrians, river traffic, and cyclists on priority. Road traffic will follow in future if cost allows for it. The DfT will only sign the MoU if all parties agree to share the cost of the repairs, with the Government of the UK not covering more than one third of the total cost.

 

The latest agreement follows the two previous support packages that were agreed to in April and October 2020, and takes the overall government support to the TfL to over GBP4 billion since March 2020.

 

(1 GBP [British Pound] = 1.42 USD)