Transport for London (TfL) delayed nearly half a billion pounds in capital spending during its latest financial year, while its debts climbed past £11bn.
Borrowing, which is one of TfL’s core funding streams, increased by £728m over the year to a total of £11.2bn, according to TfL data published today.
Last year a London Assembly investigation found that TfL’s debt is expected to hit over £13bn by 2022-23, which it said was “worrying”.
TfL’s director of planning, Alex Williams, admits TfL has “maxed out” its borrowing and says it needs to seek Treasury approval if it wanted to take out more.
“There is no more we can do on that front,” he adds.
Meanwhile, capital renewals and new investment were £455m lower than budget in 2018-19, with the majority of this – £433m – “reprofiled” into future years for projects such as the Northern line extension and upgrading stations.
TfL struggles to carry out these improvements within their original time frame because of an array of pressures placed on its finances by the Crossrail delay, Sadiq Khan’s fare freeze and a £700m a year reduction in the government grant.
The Northern line extension, which will extend the Northern line to Battersea, was scheduled to open next year, however, it will now open in September 2021.
TfL are shelving plans to upgrade Camden and Holborn unless it receives more government funding. Meanwhile, projects such as the Bakerloo line extension remain a distant ambition.
Conservative leader in the London Assembly, Gareth Bacon, who is the chair of its budget and performance committee, says:
“It is now clear that Sadiq Khan has maxed-out TfL’s corporate credit card, meaning that he is no longer able to borrow in order to invest in new transport infrastructure upgrades.”
He adds that, “this dire financial situation is made even worse by the fact that the GLA are having to pay for the debt which has resulted from the unacceptable delays to Crossrail.”
Deputy chair of the London Assembly’s transport committee, Caroline Pidgeon, says:
“Borrowing to help finance capital expenditure that in turn generates new sources of fare income has real merit, but the increased levels of borrowing by TfL are simply not delivering that.”
Chief finance officer at TfL, Simon Kilonback, says: “In a very challenging financial climate, we once again reduced operating costs across the year and halved the operating deficit to remain on course for a surplus by 2022/23.”
He added: “Great progress was made on huge projects such as the Northern line extension to Battersea, rebuilding Bank station and upgrading the Circle, District, Hammersmith & City & Metropolitan lines.”
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HeadlineTfL delays investment indefinitely as debt climbs to £11bn
Short HeadlineTfL delays investment as debt climbs to £11bn
StandfirstTfL's debt is expected to hit over £13bn by 2022-23
Transport for London (TfL) delayed nearly half a billion pounds in capital spending during its latest financial year, while its debts climbed past £11bn.
Borrowing, which is one of TfL’s core funding streams, increased by £728m over the year to a total of £11.2bn, according to TfL data published today.
Last year a London Assembly investigation found that TfL’s debt is expected to hit over £13bn by 2022-23, which it said was “worrying”.
TfL’s director of planning, Alex Williams, admits TfL has “maxed out” its borrowing and says it needs to seek Treasury approval if it wanted to take out more.
“There is no more we can do on that front,” he adds.
Meanwhile, capital renewals and new investment were £455m lower than budget in 2018-19, with the majority of this – £433m – “reprofiled” into future years for projects such as the Northern line extension and upgrading stations.
TfL struggles to carry out these improvements within their original time frame because of an array of pressures placed on its finances by the Crossrail delay, Sadiq Khan’s fare freeze and a £700m a year reduction in the government grant.
The Northern line extension, which will extend the Northern line to Battersea, was scheduled to open next year, however, it will now open in September 2021.
TfL are shelving plans to upgrade Camden and Holborn unless it receives more government funding. Meanwhile, projects such as the Bakerloo line extension remain a distant ambition.
Conservative leader in the London Assembly, Gareth Bacon, who is the chair of its budget and performance committee, says:
“It is now clear that Sadiq Khan has maxed-out TfL’s corporate credit card, meaning that he is no longer able to borrow in order to invest in new transport infrastructure upgrades.”
He adds that, “this dire financial situation is made even worse by the fact that the GLA are having to pay for the debt which has resulted from the unacceptable delays to Crossrail.”
Deputy chair of the London Assembly’s transport committee, Caroline Pidgeon, says:
“Borrowing to help finance capital expenditure that in turn generates new sources of fare income has real merit, but the increased levels of borrowing by TfL are simply not delivering that.”
Chief finance officer at TfL, Simon Kilonback, says: “In a very challenging financial climate, we once again reduced operating costs across the year and halved the operating deficit to remain on course for a surplus by 2022/23.”
He added: “Great progress was made on huge projects such as the Northern line extension to Battersea, rebuilding Bank station and upgrading the Circle, District, Hammersmith & City & Metropolitan lines.”
