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Friday 16 October, 2020

Transport For London

Short-term Extension of Government Support Package

RNS Number : 3803C
Transport For London
16 October 2020
 

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014.

 

 

Transport for London ("TfL")

 

 

 

16 October 2020

 

Short-term Extension of Government Support Package

TfL has supported Government through the coronavirus pandemic and taken measures to reduce the spread of the virus and protect the public, by initially encouraging people to stay at home and avoid public transport unless making critical journeys.  Subsequently, we have supported the Government's restart and recovery work and guidance on travel as it has adapted to the pandemic.

As a result of a significant reduction in passenger journeys, our revenues continue to be negatively affected compared to our latest business plan, as is reflected in our revised budget, approved by the Board on 29 July 2020. The exact future impact is difficult to forecast due to the uncertainty around the evolution of the pandemic and measures taken to prevent its spread.

On 15 May 2020, TfL announced that an extraordinary funding and financing support package (the "Funding Package") had been agreed between TfL and DfT to contribute towards TfL's forecast funding shortfall. The Funding Package was based on the assumption that the funding shortfall would be £1.6bn for the period 1 April 2020 to 17 October 2020. The agreement also recognised that further support measures will be required to enable TfL to maintain essential services and deliver a revised balanced budget over the remainder of the financial year.

In recent weeks TfL has been in constructive discussions with DfT in relation to support for the remainder of the year to 31 March 2021 and beyond. While these discussions are ongoing, it has been agreed that the existing Funding Package will be extended for a further two weeks and will continue to apply until 31 October 2020. As the actual funding shortfall to 17 October was less than £1.6bn, largely due to higher than anticipated ridership, the funding provided under the existing Funding Package can continue to be used and will remain sufficient while discussions continue throughout the next two weeks.

 

 

 

 

 

For further information, please contact:

 

 

Transport for London

 

5 Endeavour Square

 

London E20 1JN

 

Email: [email protected]

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