Mayor cuts waste at TfL to fund an affordable and modern network

Mayor cuts waste at ‘flabby’ TfL to fund an affordable and modern transport network that works for all Londoners

· The TfL Business Plan published today sets out plans to freeze TfL fares, while delivering an ambitious programme of modernisation and transformation

· The plan for the next five years includes the biggest ever increase in Tube capacity and bringing forward the extension of the Bakerloo Line

· Record investment will make London’s streets cleaner and healthier – including doubling investment in cycling, an extended ULEZ, and introducing a transformed cleaner London bus fleet

· TfL efficiency savings to total £800m per year by 2020/21, while protecting front line services and transport investment

The Mayor of London Sadiq Khan has today hailed the new Transport for London (TfL) draft Business Plan, which sets out how the organisation will deliver his vision for transport over the next five years.

The plan, which will be considered by the TfL Board next week, sets out how investment in the public transport network will bring huge improvements for passengers, while at the same time keeping down the cost of travel, benefitting millions of Londoners.

The Mayor has already announced plans to make transport more affordable by freezing TfL fares for the duration of his mayoral term and by introducing the ‘Hopper’ fare that has already delivered over 10m free bus journeys for people changing buses within an hour.

TfL’s new Business Plan sets out a wide range of further improvements that will be implemented to meet the needs of London’s growing population, while making London’s streets healthier and safer, and make public transport more accessible.

This wide-ranging programme of modernisation includes:

• The biggest Tube capacity growth that London has ever seen. This includes introducing the Elizabeth line, which will substantially improve travel across London, installing new signalling on the Metropolitan, Hammersmith and City, District and Circle lines, so that trains can run more frequently, and further upgrading the Jubilee and Northern Lines, which will see a 17 per cent and 20 per cent boost in capacity respectively. The construction of brand new trains for the Piccadilly, Central and Bakerloo lines will begin and station upgrades will be completed at Victoria, Bond Street and Finsbury Park and elsewhere.

• Work on an extension of the Bakerloo line to Lewisham, via Old Kent Road and New Cross Gate, will progress with the completion date brought forward by two years from 2031 to 2028/29 to fit in with the timetable for the upgrade of the Bakerloo line. This is supported by both the London Borough of Lewisham and London Borough of Southwark, and will support up to 25,000 new homes and 5,000 new jobs.

• Work to modernise Camden and Holborn stations will get underway, the Northern line will be extended to Battersea, and the London Overground extended to Barking Riverside. The capacity of the DLR will also be increased by a third. Together these improvements will unlock thousands of homes and jobs and substantially improve connectivity.

TfL will explore the option of rolling out of the Night Tube onto additional lines, further supporting London’s important night-time economy.

New east London river crossings will be progressed, including the Silvertown Tunnel, which will improve bus connections in east London and take pressure off the Blackwall Tunnel, a new pedestrian and cycling bridge linking Rotherhithe and Canary Wharf, and an extension of the DLR from Gallions Reach to Thamesmead.

Hundreds of millions of pounds will be invested in schemes to help transform areas such as Old Street and Vauxhall, where safer crossings, new cycling infrastructure and better public spaces are being created. Other areas that will see improvements include Stratford town centre and Oxford Street, where the Mayor and TfL continue to work with Westminster City Council and others on plans to transform the Street for pedestrians.

In order to deliver these wide-ranging improvements across London’s transport network, TfL is undertaking the biggest ever overhaul in the history of its organisation. TfL is re-organising itself on a solid and sustainable long-term financial footing. This includes making significant operational and capital savings by reducing management layers, merging functions to eliminate duplication, reducing reliance on expensive agency staff and negotiating better deals with its suppliers.

Every area of TfL’s business is being redesigned with value for money at its core, from IT projects, to procurement, to project planning and delivery. In total, TfL expects to be generating cost savings of £800m per annum from value and organisation initiatives by 2020/21. Savings incorporated in the plan include:

• £2bn from establishing a new operating model for their business by reducing management layers, merging functions such as engineering to eliminate duplication. TfL has already reduced spend on IT projects, saving £70m, and implemented an exit programme that has seen 49 senior managers leave the organisation saving £40m over the next five years, as well as reducing spend on non-permanent labour and consultancy, saving £50m a year.

• £2bn through renegotiating and bringing together the management of contracts, getting more affordable deals from suppliers, and renewing and enhancing assets in more cost effective ways. TfL has for example already identified savings of £80m per year over the next five years by moving Tube maintenance in-house.

• TfL is also taking a fundamentally different approach to raising non-fares income by fully realising its enormous advertising estate and maximising its land and retail estate in support of the Mayor’s housing strategy. TfL aims to raise £3.4billion for reinvestment in the transport network by 2023 through property development, advertising and consultancy opportunities. This work includes putting spare land to better use by building 10,000 homes.

Sadiq Khan, Mayor of London, said:

“From my first day as Mayor of London I’ve been on a mission to create a modern and affordable transport that works for every Londoner. The new TfL Business Plan being presented today sets out an ambitious and wide-reaching programme that allows us to both freeze TfL fares, and invest record amounts modernising London’s transport’s infrastructure.

“The previous Mayor refused to do it, but in reorganising a flabby TfL and finding major efficiency savings within the organisation, we’re securing this record investment without burdening Londoners with further hikes in TfL fares.

“Our plans over the next five years include modernising major Underground stations, bringing forward plans to extend the Bakerloo Line, and investing record amounts in cycling and cleaning up London’s air. The greatest city in the world must also have a genuinely world-class transport system, and this is vital for the future success of London’s economy. Today sets out the scale of our ambition.”

Simon Moore, CBI London Director, said:

“As London grows, it’s vital there is continued and sustained investment in the city’s transport infrastructure. This will give Londoners and those who visit and work in the capital higher quality, and more reliable, transport links.

"Transport for London's ambitious business plan is welcome news, and is a great opportunity for the city to plan ahead to ensure it remains a magnet for skills, investment and tourism from around the world."

John Dickie, Policy and Strategy Director at London First, said:

“The Mayor’s focus on creating a more efficient TfL is critical to fund the investment needed to upgrade Tube capacity and meet the demands of London’s growing population.

“We’re delighted the Mayor has sped up plans to extend the Bakerloo line which, alongside better river crossings, will help unlock the economic potential of East and South East London.”

Antony Walker, techUK Deputy CEO, said:

“In creating a forward focused innovation driven business plan with technology at the heart, TfL has acknowledged that it must invest in its digital transformation to be a world-leading smart transport system. The technology industry stands ready to support TfL in delivering on its ambitious business plan through collaboration and innovation.”

Faryal Velmi, Director, Transport for All, said:

“We welcome the Mayor’s focus on a modern, accessible transport network. Investment in Tube capacity and step-free stations will mean more travel options and greater opportunity for all Londoners – particularly disabled and older people - to enjoy our great Capital and travel with freedom and independence”.

Mike Brown, London’s Transport Commissioner, said:

“Transport is not an end in itself. It is a means of helping a city prosper by supporting new jobs and homes and improving connectivity. This plans sets out how, over the next five years, we will become a more efficient and commercially-minded organisation and at the same time meet the Mayor’s vision of an modern, affordable, accessible and green transport network for all Londoners.”