Sadiq Khan condemns price hike ‘triple whammy’ under Government’s proposals for TfL funding

Sadiq Khan has accused the Government of trying to “punish” Londoners with a “triple whammy” of price hikes as part of a financial support plan for TfL.

The capital’s mayor called for the “draconian” proposals, which include a larger congestion charge zone and higher Tube and bus fares, to be reconsidered.

Transport Secretary Grant Shapps proposed the measures, for which in return TfL would receive six months of rescue funding lasting from now until Match next year. He also suggested that the Government would seize control of TfL if the measures were not followed.

But Mr Khan refused to accept the proposal outlined in a letter from Mr Shapps, telling ministers that it was “completely unacceptable,” and “singles out Londoners for punishment.”

He: "I simply cannot accept this Government plan, which would hit Londoners with a triple whammy of higher costs at a time when so many people are already facing hardship.

"The Government should be supporting Londoners through this difficult time – not making ill-advised and draconian proposals which will choke off our economic recovery.”

Ministers want to extend the £15 Congestion Charge Zone to the North and South circular roads in 12 months' time. This would see the zone expanded to cover approximately four million more Londoners.

The Government also wants to increase TfL fares and is “doubling down” on their demand to remove free travel for under-18s, City Hall said.

He wrote to Mr Khan saying that the Government would take "reserve legislative powers allowing us if necessary to direct TfL" if the measures were not followed.

Mr Shapps, in a letter seen by the Financial Times, said that Downing Street's seizure of TfL would be combined with a further series of "short-term funding settlements.”

The London Mayor said an expansion of the congestion zone would have negative economic consequences and a council tax supplement would “place even more reliance on an already broken form of taxation and would be regressive”.

It comes after the Government agreed on Friday to extend its financial support of TfL for two weeks while negotiations on a new bailout continue.

TfL boss Andy Byford described the two-week extension as a “sensible pragmatic solution” that “keeps people’s minds focused”.

He added: “We can now get this deal done. We really are very close, and it’s absolute top priority for all of us to get this thing across the line, and I believe that the two weeks will suffice.”

TfL’s finances have been severely hit by the drop in travel caused by the coronavirus pandemic. A £1.6 billion bailout agreed with Mr Khan in May put funding in place until Saturday.

It was reported last month that Mr Khan was seeking a £5.7 billion bailout to keep London’s transport system going for the next 18 months.

Mick Cash, general secretary of the Rail, Maritime and Transport union, said speculation that the Government threatening to take control of TfL was “bullying by this administration designed to impose their will on Londoners and ride roughshod over local democracy.”

He added: ”While we await official confirmation on the future funding arrangements for transport in the capital, RMT reiterates our position that we will not tolerate any attacks on jobs and conditions from any quarter as part of any deal."

Shadow transport secretary Jim McMahon said: "It's extremely worrying that despite repeated requests, the Government is offering only a papering-over-the-cracks funding package for Transport for London, with such punitive conditions.

"If the Government gives financial support to the privately operated rail network, it is inconceivable that it does not do the same for publicly owned transport providers like TfL, which need long-term secure funding during what could be a lengthy period in which they won't be able to operate at full capacity."

Manuel Cortes, TSSA general secretary, said Londoners "shouldn't be made to pay" for coronavirus.

"This punishment of Londoners and TfL is nakedly political from the Tories," he said.

"They were only too happy to prop up failing private train operators, but when it comes to our country's transport success story they won't provide the funds needed."

He added: "Transport for London is strategically vital to the country and it and its hero transport workers will help speed the country's economic recovery.

"This Government needs to recognise that. Punishing the poorest blatantly flies in the face of their so-called levelling up agenda - exposing it for the empty rhetoric it really is.

"It's clear that Johnson and his Tory ministers hate Liverpool, Manchester and London because most of its people don't vote for them so they dish out collective punishments for them. Johnson and his cronies are lower than vermin."

A spokesman for the Mayor of London said negotiations with the Government were continuing, but added: "Suffice it to say there is simply no way any mayor could accept conditions of this nature, which would make it harder to tackle the virus and choke off London's economic recovery at the worst possible time."

Finn Brennan, Aslef's organiser on London Underground, said: "The Government's failure to provide funding for publicly owned TfL is in stark contrast to the multimillion-pound handouts to private sector operators and management consultants.

"TfL staff and passengers need the Government to stop playing political games and provide the resources needed to keep London moving and for its economy to recover from this pandemic."

A Department for Transport spokeswoman said: "We have agreed an extension to the support period and to roll over unspent funding from the Transport for London Extraordinary Funding Agreement, allowing further time for negotiations for a new settlement.

"These discussions will ensure London has a safe, reliable network. It would be inappropriate to disclose further details at this stage."

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TfL funding extended two weeks as talks continue with Government