Transport for London Funding

Dr Alison Moore AM moved, and Joanne McCartney AM seconded the following budget related motion:

"The Assembly notes that Transport for London (TfL) has lost £2.4bn in fares revenue as a result of Londoners doing the right thing and staying at home during the pandemic. We further note that the October funding settlement specifies that free travel for all Londoners aged under 18 and 60-65 would not be met by Government funding and must be met without recourse to additional borrowing, savings, service charges or deferrals.[1]

The Assembly is disappointed this funding agreement has funding conditions attached while private rail companies have received no-strings attached long-term funding settlements. These conditions have resulted in the Mayor having to raise council tax to fund free travel for children and 60-65 year olds in London.

The Mayor and Government now need to agree a sustainable, long-term funding settlement for TfL with devolution at its heart. The devolution of Vehicle Excise Duty should be part of this settlement; the lack of government commitment to devolve this income has meant the Mayor has had to look at alternatives both he and the Assembly believe to be unfavourable such as an Outer London Boundary Charge.

We welcome that Group Leaders on the Assembly came together to write to the Transport Secretary to ask that the Government give London back the Vehicle Excise Duty it raises. We further call on the Mayor and the Chair of the Assembly to write to the Chancellor ahead of the upcoming 3rd March Budget to ask that the Government devolve Vehicle Excise Duty and provide funding to cover the cost of travel for under 18s and 60-65 year olds in London throughout the course of the Covid-19 pandemic."

Following debate and upon being put to a vote, the budget related motion was agreed (14 votes being cast in favour, 9 votes being cast against and 1 abstention)