Crossrail and Tube upgrades to go aheadTfL's funding settlement means that the Mayor and TfL can continue to deliver top transport priorities, which include:
- Protecting London's extensive and accessible bus network which is of social and economic importance particularly in outer London
- Major congestion relief schemes at Victoria, Bond Street, Tottenham Court Road, Paddington and Bank Tube stations. Together with Crossail these schemes will add 30 per cent additional capacity to the transport network, boosting the UK economy and improving reliability
- Transport commitments for the 2012 Games
- Extending Barclays Cycle Hire before the 2012 Games and delivering all 12 Barclays Cycle Superhighways by 2015
- Removing the Western Extension of the Congestion Charging zone by Christmas
- The London Overground extension to Clapham Junction which will be delivered by the end of 2012
- Fare increases for 2011 maintained at the level announced last year - RPI plus two per cent - while free travel and concessions for Londoners stay protected
Mayor of London Boris Johnson said: 'Last year, I made it clear that when setting fares my priority is to protect the elderly, the young, the poorest and disabled Londoners, and this fares package will continue to do so, particularly at a time when many need that protection.
'All free and concessionary fares will remain in their entirety.
'I am particularly pleased that we have secured the future of Crossrail, upgrade work on the Tube and the protection of our bus services.
'Without them we would have risked the long term economic prosperity of not just the Capital, but the whole of the UK.'
Around a third of TfL's funding comes from a direct grant from the Department for Transport.
Following the Spending Review, this grant has been reduced by £2.17bn in total over the four years to 2014/15.
This equates to 21 per cent, when compared to 2010/11.
However, TfL is also funded by other sources, including fares, borrowing and revenue from advertising and commercial partnerships.
Taking this into account, by 2014/15, this cut represents less than eight per cent of TfL's planned expenditure on capital investment (excluding Crossrail) and frontline services.
The reduction in funding has, in part, been covered by increased ridership on the transport network but it has meant some tough choices in order to further cut costs or raise revenue.
The Mayor and TfL have outlined more than £5bn of savings and efficiencies over the course of TfL's previous Business Plan period and a revised Plan will be published in spring next year.
TfL proposes to meet the challenge of this settlement in a number of ways including:
- A restructure of TfL focusing on protecting investment in the transport network and frontline services while delivering the best value for money
- Saving more than £1bn on Crossrail. A more efficient construction timetable means the central section will now be delivered in 2018
- Saving more than £300m by working more efficiently on upgrades and schemes, paring back cosmetic works at stations and deferring non-essential works
- Reduced funding to boroughs for small-scale projects reflecting the grant TfL now receives from government
- Reducing road maintenance spend while preserving the state of of the roads through greater operational efficiency
- Finding alternative funding for projects
- Charging for parking on TfL's Road Network which, currently, is generally free
A number of savings have already been identified and are being implemented which, as well as stronger fare revenue, means that TfL's Business Plan will be boosted by additional £800m over the period.
This accounts for well over a third of the reduction in our DfT funding.
The transport upgrade is also generating jobs and benefits across the UK.