London mayor Sadiq Khan said Transport for London (TfL) must “thoroughly scrutinise the offer” which it received on Friday night.
Transport Secretary Grant Shapps described the proposal as a “final offer”.
The capital’s transport body has been reliant on money from the Government to keep services running during the coronavirus pandemic.
I've offered @TfL a settlement that supports £3.6bn worth of projects, matching the Mayor's own spending plans from 2019. This is our final offer which more than delivers for London while being fair to UK taxpayers.
— Rt Hon Grant Shapps MP (@grantshapps) July 27, 2022
Mr Khan said: “Today, the Government has given TfL a short-term extension to the current emergency funding deal until August 3.
“This is only necessary as the Government shared the long overdue, draft proposal for a funding settlement to TfL late last Friday, and it’s right that time is taken to thoroughly scrutinise the offer and understand it’s impact on Londoners and TfL services.
“This is a £10 billion transport authority that is crucial to supporting jobs and economic growth across the country.
“TfL must consider if this draft proposal provides the funding needed in order to avoid having to make painful cuts, and it’s in no-one’s interest to have conditions attached to this funding deal that come at a cost – damaging TfL, unfairly punishing Londoners and our economic recovery.”
Andy Byford, London’s transport commissioner, said: “Since keeping London moving through the darkest periods of the pandemic we have been making the case to Government that there can be no UK recovery without a London recovery and that there can be no London recovery without a properly funded transport network.
“We are grateful for the support we have received so far, and maintain we have met every condition that has been set by Government as we have worked towards agreeing a multi-year funding settlement that would give certainty to London and to the tens of thousands of jobs across the country that are directly linked to TfL.
Every other major transport system around the world receives central government funding, and London needs the same if it is to have a transport network that can continue to support homes, jobs, opportunities and economic growth
Andy Byford, London's transport commissioner
“Every other major transport system around the world receives central government funding, and London needs the same if it is to have a transport network that can continue to support homes, jobs, opportunities and economic growth.”
He added: “There are some significant issues we need to discuss with the Government in terms of deliverability and the need to avert managed decline of the capital’s transport network in both the short and longer terms. We hope these discussions can be concluded successfully soon.”
Mr Shapps wrote on Twitter: “At the request of TfL, I’ve granted one final extension to August 3.
“After two years and over £5 billion of funding, I know the settlement offered supports London’s transport network and offers value for money for taxpayers.
“It’s now up to the mayor to put London first and accept.”
The Department for Transport said: “Despite the mayor publicly calling on the Government on numerous occasions to deliver a long-term deal, he had not given vital evidence required to progress talks and reach a deal which would not only represent value for money for all taxpayers but would deliver for London at this crucial time.
“This is in spite of officials meeting with TfL regularly for months at senior and working levels and (transport minister) Baroness Vere recently meeting with the deputy mayor of London (Seb Dance).