business news

UK govt provides £1.08 Bn financing package for Transport for London

UK govt provides £1.08 Bn financing package for Transport for London
UK govt provides £1.08 Bn financing package for Transport for London

The UK government has reportedly agreed to a £1.08 billion financing package for TfL (Transport for London). The move ensures the consistent running of the transport network of London as the country progresses along the roadmap of the UK government through the SARS-CoV-2 pandemic.

The settlement will offer financial support until 11th December 2021. Furthermore, it will also ensure that critical reforms are accelerated for ensuring the financial sustainability of TfL in the long term.

According to Grant Shapps, the Transport Secretary of the UK, the £1.08 billion funding package will be supporting London and its transport network through the COVID-19 pandemic. The deal will also ensure that it is an efficient, modern, and viable network for the future.

Shapps also underscored that through the entire process, the government has maintained that these support packages must be fair for taxpayers across the United Kingdom. In addition, it has also put the condition that action must be taken for putting TfL on the way towards long-term financial sustainability. As part of the recent settlement, the Mayor has agreed to furthering measures that would help in ensuring that, added Shapps.

As per reliable sources, the agreement builds on commitments from the earlier support packages and sets out further measures that are to be taken for ensuring that TfL is financially sustainable through April 2023. These measures comprise progressing efficiency as well as cost-saving initiatives and the identification of increased or new sources of revenue for TfL beyond 2023.

Moreover, the agreement provides value for money for taxpayers across the UK and recognizes the significance of London’s economy. The deal comes after the two earlier emergency support packages that were agreed in April 2020 and October 2020. This takes the total support of the government to TfL since March 2020 to more than £4 billion.

Reportedly, the Mayor has also agreed to working in collaboration with DfT on a joint initiative for the implementation of higher levels of operation of automatic train on the London Underground.

Source credit: https://www.gov.uk/government/news/government-agrees-conditions-based-108-billion-funding-deal-with-transport-for-london

About the author

Nandita Bhardwaj

Nandita holds a management degree with specialization in marketing, and boasts of a short-term experience in the field of recruitment. Following her passion for writing however, she decided to pursue a career in the field of content development. Presently, Nandita pens down news pieces for newsorigins.com, spanning the verticals of business, finance, and technology.