Property groups call for TfL deal as London’s transport use stutters
A group of developers and investors have joined forces to call on the government to support Transport for London with a permanent funding model.
The beleaguered public transport body, led by the mayor of London, has been fighting for a deal with central government, with the latest £1.08bn bailout – its fourth in the past 19 months – set to expire on 11 December.
The London Property Alliance, which represents more than 400 top real estate companies, said a lack of a proper funding model would jeopardise long-term economic growth in the city, as it released new research showing that TfL is already falling behind its counterparts in other global cities.
A group of developers and investors have joined forces to call on the government to support Transport for London with a permanent funding model.
The beleaguered public transport body, led by the mayor of London, has been fighting for a deal with central government, with the latest £1.08bn bailout – its fourth in the past 19 months – set to expire on 11 December.
The London Property Alliance, which represents more than 400 top real estate companies, said a lack of a proper funding model would jeopardise long-term economic growth in the city, as it released new research showing that TfL is already falling behind its counterparts in other global cities.
Station visits in London remained 31% below pre-pandemic levels in late November 2021, researchers said, behind New York at 27% below pre-pandemic levels, Berlin at 24% below the benchmark, Hong Kong, which is now 1% above pre-Covid levels, and Paris, which is just 5% below.
The slow rate of return to public transport in London is particularly concerning to TfL bosses given that 72% of its total funding in 2020/21 was derived from passenger fares – more than its competitor cities, which rely more heavily on public funding.
Alexander Jan, chief economic adviser to the LPA and co-author of the report, said: “A long-term decline in investment risks a spiral in ridership demand that will have long-term damaging consequences for London’s economy and the city’s sustainability credentials.
“Paris and New York are not waiting around; they are investing heavily in their transport infrastructure just as London is forced to lurch from one short-term deal to another.”
The calls echo statements earlier this week by London mayor Sadiq Khan, who warned that failure to secure funding would pose risks to major infrastructure projects and housing development.
The mayor has already been forced to cut 500 jobs on the network in a bid to save cash, as the fight between City Hall and Whitehall rages on.
Between 500 and 600 jobs at Tube stations across London are set to be axed, with larger central London stations to absorb the largest cuts.
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