TfL Business Plan and Budget for the Next 5 Years – More of the Same

London Road

Transport for London (TfL) have published their Business Plan to cover the next 5 years and a Budget for the next year. The latter has already been approved by the London Assembly.

I shall pick out a few key points from these long documents which are certainly worth reading if you have the time – see https://tfl.gov.uk/corporate/publications-and-reports/business-plan .  Bear in mind that as always, it’s money that drives the political and policy decisions – in this case the apparent desire of the Mayor to build a bigger empire and control more of our lives. So private transport will be discouraged and he wants more money from central Government and from Londoners to fix his self-inflicted budget problems caused by fare freezes, Crossrail delays and reckless expenditure on cycle infrastructure.

The delays to Crossrail and its rising cost run through the whole document like an albatross around the Mayor’s neck. Crossrail is now unlikely to open until 2021 which means £750 million in lost revenue as against that expected, hitting the TfL budget. In addition the delays and extra work means extra costs of up to £650 million and it’s not clear where that money will be coming from. There are very optimistic forecasts in the Business Plan for income from Crossrail – for example £884 million in 2023/24. Will it really be achieved?

Diesel Buses, one of the major sources of air pollution in the capital, are to be replaced to a large extent by 2,000 zero-emission buses by the end of the 5-year business plan period, but the whole fleet will not be zero-emission until 2037. However they will be at least Euro VI compliant soon. There is also a commitment to install 300 rapid Electric Chargers for other vehicles by the end of 2020.

Note that the London bus network has been reduced partly due to falling passenger numbers and income no doubt but there is also a reduction in central London offset by increases in outer London.

TfL Transport Commissioner Mike Brown reiterates the commitment to Vision Zero to reduce road casualties despite the fact that the policy has had negligible impact to date – see a previous blog post on that subject. He also commits to tripling the amount of “protected” Cycling space which will mean more underused cycle lanes. But he is also committing to make 73 junctions safer which may assist cyclists.

Despite cutting operating costs, one of the few good things reported, there will be deficits of £307m, £493m and £513m in TfL (after “capital renewals”) for this year and the two following ones and barely break-even in 2022/23. As a result the Mayor will have to substantially increase borrowing to cover that and large amounts of capital expenditure for both Crossrail and other network improvements. That includes £2.2 billion this year and next year, followed by £1.2 billion each year in subsequent years. Total borrowing will reach £12.3 billion within 2 years. None of this is being spent on the road network of course other than some maintenance.

So far as the road network is concerned, the maintenance of road surfaces including the repair of pot-holes has been reduced in the last two years which the documents concede has caused a deterioration in road assets. However there is a commitment to “gradually restore the condition of highway assets, with a focus on those that contribute more to walking, cycling and public transport” whatever that means. Does that mean they will fund repairs to bus lanes but not the rest of the road?

On Hammersmith Bridge whose closure is causing major problems in West London, the document only says that £25 million has been allocated to pay for preliminary work but no contract will be awarded to repair the bridge until Spring 2020 and it might take several years to complete the work. It is unclear where the money required will come from. The Rotherhithe Tunnel will be refurbished within the next 5 years – cost of around £140 million, and work done on the A40 Westway. Work on the Silvertown Tunnel should commence in 2020 and complete by 2025.

As regards the ULEZ, the Budget document finally discloses some financial figures. In 2018/19, the ULEZ will contribute most of the £215 million improvement in operating income in the current year, but with implementation costs of £58 million, i.e. a net £157 million which is somewhat more than previously forecast (see   https://tinyurl.com/y4w6pwuk ). As the Budget document only covers the year 2019/20 and no details are provide in the Business Plan the impact of the extension of the ULEZ to the North/South Circular is not apparent but the Mayor clearly intends to push ahead with that (assuming he gets re-elected).

The Business Plan indicates that fares income is expected to rise at around RPI which ignores the fact that Sadiq Khan has already promised to continue to freeze public transport fares if he gets re-elected, at least for 2020. So the Business Plan may be totally unrealistic.

In summary the Business Plan and Budget demonstrate an incompetent Mayor and senior management at TfL who wish to get us all cycling, walking or using public transport while the road network gets worse. This results in more traffic congestion and more air pollution which most Londoners would prefer them to fix. The persistent financial mismanagement by the Mayor will also come home to roost sooner or later.

A good example of the result of his policies is actually shown in a photograph of an east London street in the Business Plan document. A long queue of traffic in one lane with the bus lane unused and few cyclists in the cycle lane! See above.

Roger Lawson

Twitter: https://twitter.com/Drivers_London

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4 thoughts on “TfL Business Plan and Budget for the Next 5 Years – More of the Same

  1. Pingback: Sadiq Khan Asks for £1 Billion Bail-Out | Alliance of British Drivers (ABD) London

  2. Pingback: Good News for Londoners, and The Truth About TfL Budgets | Alliance of British Drivers (ABD) London

  3. Pingback: More London Road Closures and Another TfL Bailout | Alliance of British Drivers (ABD) London

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