Motorists would be paying an additional £300 million a year to drive in London under Sadiq Khan’s plans to restore Transport for London’s finances, it has emerged.
Documents published today show for the first time how much revenue TfL expects to receive from the Mayor’s proposal to introduce a £2-a-day “clean air charge” and/or expand the ultra-low emission zone (Ulez) to the Greater London boundary.
The figures are included in a budget update to be considered by TfL’s board tomorrow which also shows the organisation faces a £1.5bn hole in its finances by 2024/25, in spite of massive cuts to schemes previously considered a priority.
TfL’s “healthy streets” budget, which is designed to encourage safe cycling and walking, faces a £473 million cut and the second phase of making lorries safer to prevent road deaths is being shelved.
The Tube is at risk of “multi-day closures” because of a lack of cash for repairs, and new signalling for the Piccadilly line has been axed.
A total of 45 road structures were revealed to have interim safety measures in place due to their poor condition, including the A40 Westway, Vauxhall bridge and North Circular intersection at Brent Cross.
Mr Khan last month revealed a series of options, including the “clean air charge” — which would be imposed on all petrol and diesel vehicles — expanding the Ulez beyond the North and South Circulars or introducing a £3.50-a-day boundary charge paid by out-of-town drivers.
This is in addition to a fares hike of about five per cent due to be added to Tube and bus fares from next month, and a £20 levy on average council tax bills to help TfL recover from a catastrophic drop in fares income as a result of the pandemic.
Mayoral sources today insisted that no decisions had been taken about implementing any of the options.
TfL’s latest Government bailout runs out on Friday and Mr Khan said the scale of its infrastructure problems showed the need for a long-term funding deal, though the funding gap has narrowed slightly on the £1.7bn gap predicted last December.
Nick Bowes, chief executive at the Centre for London thinktank and a former aide to Mr Khan, said: "Reducing people’s reliance on private cars is crucial if London is to achieve the city’s ambitious net-zero targets, improve air quality, cut congestion and make our streets safer.
"If we’re to have a shot at reaching these targets, getting more people walking and cycling for shorter journeys is crucial. But this will be all the harder if Transport for London’s healthy streets budget is cut.
"This budget update adds yet more urgency to the Government and City Hall agreeing a sustainable, long-term funding deal for Transport for London. Without a funding settlement, we will struggle to build safe, well-designed routes that support people to walk and cycle more."
TfL predicts fares income will return to pre-pandemic levels in the new financial year from April. Passenger income is £1bn up on last year but only at two-thirds of normal.
A spokeswoman for Mr Khan said: “This is a small window into the stark reality of the financial crisis facing TfL, just days away from the current Government funding deal expiring.
“Without a new, sustainable long-term funding deal there is a real risk of major projects being paused, cuts to services, trains falling into disrepair and closures on major road networks.”
The Government has “affirmed its commitment” to mitigate TfL’s fares loss resulting from the pandemic and is “ready to work with TfL to consider a longer-term capital settlement to support TfL to achieve, and subsequently maintain, financial sustainability by April 2023”, the report states.
