TfL bailout extended as government prepares to 'finalise terms'

The Government and London mayor Sadiq Khan have agreed a 10-day extension on the current Transport for London (TfL) funding deal, which was due to expire on Tuesday (18 May).

In a written statement, transport secretary Grant Shapps told MPs: ‘This extension will continue to support the capital and the transport network until 28 May 2021 on the same terms as now. The extension will provide certainty while we finalise the terms of the next funding deal which will get TfL onto a more financially sustainable footing.

TfL's revenue has been hit by a fall in passenger numbers

‘The extension comprises an additional funding payment of £65 million with a top up grant available based on actual passenger revenues.’

He added: ‘The government has repeatedly shown that it is committed to supporting the running of essential services across the capital with over £3 billion emergency funding provided since the start of the pandemic.

‘Support for London needs to be balanced with the national recovery and ensure fairness and value for money for the taxpayer. The government will continue to work with TfL and the Mayor so TfL can be financially sustainable as soon as possible.’

A TfL spokesperson said: 'We continue to discuss our funding requirements with the Government and hope these discussions can be concluded successfully soon, to enable a strong and robust recovery from the pandemic.

'We have agreed with the Government that our existing funding agreement will be extended until Friday 28 May so that these constructive discussions can be concluded.'

Mr Khan was re-elected to serve a second term earlier this month.

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