3 minute read
News
Lack of TfL funding could cost London £12 billion
New City Hall analysis has painted a “dire picture” of the economic and social effects on the capital should Transport for London (TfL) be forced to move to a “managed decline” scenario if the government does not provide the emergency and long-term funding required to maintain the capital’s transport services. The most immediate effects would be from cuts to service levels.
Mayor of London Sadiq Khan outlined how bus services would need to be reduced by 18% – meaning cutting more than 100 routes – with a 9% cut in tube services. This would be coupled with a fall in reliability due to the inability to modernise train fleets, some of which date back to the 1970s.
The Mayor said this could result in half of Londoners who own a car using their vehicles more, causing gridlock, disruption and filthy air. Further losses would also come from severely constraining future capital investment in the road and transport network. The research estimates that over the next ten years: • Loss of wider economic benefits (e.g. from reduced productivity) could mean £4.5bn growth lost over the same period. • Adding together the above and including the cost of increased carbon emissions, the total economic impacts could be more than £12bn over the next decade. In present value terms, this exceeds the additional funding required by TfL by £5.2bn and means that every £1 the Treasury invests in
TfL will return £1.75 in benefits. • This is a conservative estimate.
It does not capture additional disbenefits in areas such as housing delivery and London’s competitiveness.
Unless funding is restored, the disbenefits from reduced capital expenditure are expected to increase rapidly over a longer time horizon. The mayor said further operational support from the government would be needed to ensure TfL can continue to play its vital role in the recovery from the pandemic. Sadiq Khan said: “This comprehensive analysis shows the truly dire economic and social impact that a managed decline scenario would have on our capital. From failing to progress major projects and undoing our hard work tackling carbon emissions, to halting the delivery of new homes and cutting transport services, there will be knock-on effects in nearly every area of the capital’s economy if the government fails to properly fund TfL – with London’s most disadvantaged groups affected the most. “I continue to urge the government to step up negotiations so we can save London’s transport network, and with it the economic recovery in the capital and wider country.” Andy Byford, London’s transport commissioner, said: “There is a clear relationship between London’s economy and the efficient and reliable transport service that supports it. There can be no UK recovery from the pandemic without a London recovery, and London’s recovery will rely upon its transport system.” London contributed £36.2bn a year more to the Treasury than the government spent in London in 2019/20, according to the mayor. That money goes to fund services, including public transport, in the rest of the country. London’s transport network is also the engine of the capital, with TfL investment and its supply chain currently supporting 43,000 jobs across the country, with 55p of every pound spent on London Underground by TfL going outside of London.
BEXLEY SECURES MORE SUPPORT
to boost e-business
Bexley businesses can now benefit from a newly launched service delivered by Southeast Enterprise, providing free help to develop their online offer.
Funded by Local London and the London Borough of Bexley, the
programme consists of one-to-one
sessions with an experienced business adviser, as well as a series of webinars and workshops covering a range of topics. These include social media marketing, creating a digital marketing plan, e-commerce and cyber security.
The programme will be delivered from the Engine House Bexley, at Veridion Way, Erith as well as out in the business community. The sessions will support businesses by improving their digital skills and building online communities for their marketing activities. Councillor Cafer Munur, cabinet member for growth, said: “This is a great scheme for Bexley businesses. So many businesses have been affected by the pandemic and have had to look at new ways of working. These free sessions will help local business owners develop new skills or improve old ones and reach more people in different ways.” Tony Goldstein, managing director of Southeast Enterprise, said: “This free programme has been a huge benefit to small businesses that have been affected by the pandemic. Adopting these new practices is a good way for businesses in Bexley to improve their resilience and recover faster.”
