TfL to Lose £1 billion per Year

 “TfL expects £1bn deficit by next year”. That was the headline in an article in today’s Financial Times. Apparently they have seen an internal email written by finance director Patrick Doig that the organisation faced an operating loss of £968 million in 2018/19 which he said was “clearly not a sustainable position…”. The deficit in the current financial year is expected to be £785 million this year which shows how rapidly its position is being eroded.

There are several reasons given for this erosion in their financial position – the Mayor freezing public transport fares (estimated cost £640m) did not help, but the big problem is falling revenue from users. Both bus and underground journey numbers have been unexpectedly falling.

Is this because more people are not travelling, e.g. doing internet shopping and working from home? Or is it because they have chosen to travel by bike (usage is growing), or find it is as cheap and a lot more comfortable to call Uber? Or perhaps it’s because some London residents are selling up and moving to the country with house prices peaking in London, or returning to homes in the rest of Europe. Perhaps those French, Polish, Romanian and other residents are worried about their future after Brexit? Perhaps they just got tired of life in London, unlike Dr Johnson who did not have to suffer the mediocre standards in TfL’s public transport provision.

The Mayor has only recently published his Business Plan for the years to 2022/23 (see this article: https://abdlondon.wordpress.com/2018/01/17/tfl-business-plan-mayor-sadiq-khan-wants-more-money/ ). But you can see exactly why the Mayor is so keen to raise as much as £300 million from Londoners via the Ultra Low Emission Zone (ULEZ) charges. As we have said before, the ULEZ is about money, not about improving the health of the population or cleaning up London’s air.

A comment in the FT article was by Gareth Bacon, London Assembly Conservative Members, who said there was now “serious cause for concern” about Mr Khan’s “cavalier” financial stewardship of TfL.

Roger Lawson

Twitter: https://twitter.com/Drivers_London

You can “follow” this blog by clicking on the bottom right.

Advertisements

Is Khan Trying to Kill the Private Hire Industry?

Gareth Bacon, leader of the Conservatives in the London Assembly, has published a revealing article on the policies of Mayor Sadiq Khan under the headline “Is Khan trying to kill the private hire industry – or is he just incompetent”. It suggests that Khan is pursuing short term flashy policy gimmicks but he is hampered by his election promise to freeze public transport fares. This means he is “scrambling around to make savings and raise money”. One victim of this is the private hire (minicab) industry where proposed increases in license fees are astronomical. This could force hundreds of mid-size PHV operators out of business.

The costs for larger operators such as Uber will rise enormously – as much as 102,500 per cent the article suggests. That’s assuming they even manage to retain their license which is under threat.

The recently published Mayor’s Transport Strategy indicates he wants us all to walk, cycle or use public transport as it’s more “healthy” than getting in a car or PHV. So his tactics are certainly consistent if nothing else. He not just wants you to stop owning and driving a car, he wants you to stop using private hire vehicles and taxis also no doubt.

But like all good politicians, he is not proposing a simple ban, but attacking them indirectly by raising their costs and getting tough on licensing conditions.

The full article is here and it’s well worth reading:

https://www.conservativehome.com/localgovernment/2017/11/gareth-bacon-is-mayor-khan-trying-to-kill-the-private-hire-industry-or-is-he-just-incompetent.html

Roger Lawson

Twitter: https://twitter.com/Drivers_London

You can “follow” this blog by clicking on the bottom right.