Coronavirus: Ministers in talks with Transport for London over 'funding package'
Downing Street says it wants a deal that "keeps critical services running" - after Sadiq Khan warned services could be cut.
Thursday 14 May 2020 16:20, UK
Ministers are in talks with London mayor Sadiq Khan over a "funding and finance package" for Transport for London (TfL).
Prime Minister Boris Johnson's spokesman said the negotiations are at an "advanced stage" and the cabinet has been briefed.
It comes after Mr Khan warned that TfL will have to cut Tube and bus services if it does not get further funding by the end of Thursday.
A drop in passenger numbers of 95% on the London Underground and 85% on buses due to the coronavirus lockdown has resulted in a 90% fall in income.
Mr Johnson's spokesman told reporters at a Westminster briefing: "It is a commercial discussion. We remain in close contact with the mayor and TfL to look at how we can support them.
"Our priority is on reaching an agreement which keeps critical services running for those passengers who must use public transport to get work, ensuring we keep London moving safely.
"That means protecting key routes, rapidly increasing the number of services available and protecting the interests of taxpayers in the long term."
Speaking to LBC radio, the London mayor said that because TfL is legally treated like a council "we have to be able to balance the books".
"We'd have to reduce the bus services we provide, we'd have to reduce the Tube services we provide to save money," Mr Khan said.
"If we don't get the deal done today, the CFO (chief financial officer) of TfL has legal duties that he has to follow."
Mr Khan added: "At a time when the government is wanting us to increase services to get into the recovery phase, we might be required to cut services because the government is failing to give us the grant support we need."
During the COVID-19 pandemic, TfL has been dipping into its cash reserves to meet its £600m monthly bill to operate services.
To balance its proposed emergency budget for 2020/21, TfL says it needs around £3.2bn.
Mr Khan said the talks with the government have been going on for around six weeks.
"I'm unclear about why the government are waiting until the 11th hour to agree a deal," he said.
"It is really bad form."
Some people returned to work on Wednesday as the government begins to ease the coronavirus lockdown in England.
Those who cannot work from home are being "actively encouraged" to return, avoiding public transport if they can.
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Downing Street said there had not been a "significant increase" in passengers on the London Underground in the last couple of days.
TfL said there was a 10% increase in London Underground journeys early on Thursday compared with the same period last week.
Demand between 5am to 6am was up compared with last week but down from Wednesday.
TfL has said it is doing "everything possible" to return services to normal levels.
"In keeping with the government's plans for the national rail network, next week we aim to increase to 75% of Tube services, 85% of bus services, restore the Circle Line and reopen some closed Tube stations," a spokesman said on Wednesday.