London’s transport chief is seeking a long-term funding agreement from the UK government to replace the 50-year-old tube train and shut down some of its road and rail networks.
Andy Lord wrote to Rachel Reeves to request a financial settlement of up to five years to fund TFL spending on capital projects as part of the Treasury expenditure review in June. He told the Financial Times.
London’s Transportation Authority – operates an underground and bus network, with some ground trains and many major roads disrupting six short-term relief from previous conservative governments.
“In my view, without a long-term capital financing settlement, we cannot operate the world’s largest integrated public transport,” the Lord said in an interview.
Bakerloo Line Trains is the oldest service © Stephen Chung/Alamy
One of the TFL’s most urgent priorities is to replace a 53-year-old train that runs on the underground Bakerloo Line, the oldest horse-drawn carriage.
The Lord warned that the line became increasingly unreliable as authorities struggled to maintain the trains built in the 1970s.
“We’re going to have a time when we can’t have enough trains to run reliable services and that can knock on the outcome,” he said. “We’ll keep running as long as possible, but the reality is that it’s more expensive and less reliable.”
TFL is on track to achieve its “operational surplus” for its second consecutive fiscal year. But replacing trains, updating signals, opening new infrastructure requires government money for large capital expenditures.
TFL operates underground and bus networks, as well as several ground trains and many major roads © Jason Alden/Bloomberg
The body was given £485 million in the October budget for capital expenditures for the 2025-26 fiscal year, but it has not made clear what funds were at the time.
The Lord compared TFL’s fragmentary financial settlements with other transport agencies, such as the Network Railway, the state-owned operator of UK railway infrastructure, and national highways responsible for highways. A budget is given over a five-year cycle.
However, Reeves faces an increasingly difficult backdrop of spending as the finances shaking with less than expected in January, putting pressure on finding more money for defense.
Since 2022, TFL commissioner Lord has refused to say how much he asked. However, he warned of “risks” that some of the transport networks will be less reliable without new cash.
The serious disruption in the underground central line over the past year was a result of the previous Tory government not fully funding the maintenance program, Lord said.
He added that some of the major roads operated by TFL, including Brent Crossflyover in north London, are in need of emergency repairs.
“There are restrictions on many core road allies at that moment, and there is a direct impact (on traffic) there,” he said.
TFL has ordered 94 new trains from the German industrial conglomerate Siemens to the Piccadilly Line. They are scheduled to go into service next year.
The Lord said that TFL wanted to place a follow-up order for a new train on Siemens’ Bakerloo Line.
TFL also wants to redesign the Piccadilly Line to significantly increase the number of trains that can run on the line.
New Siemens Mobility Test Train for the Piccadilly Line of the London Underground © Siemens Mobility
Other options presented to Reeves by the mainstream include further tunneling to south London and funding for major “growth schemes,” including the expansion of the Driverless Dockland Light Railway to Thamesmeade in southeast London. It was included.
“I am encouraged by the positive arguments we have (about financial settlements). I am optimistic, we will get the necessary funds,” the Lord said.
Officials said they are working with TFL on a long-term settlement. The Ministry of Transport states that “the success of London’s transportation network is essential for both the capital and the UK economy.”
After Reeves said the government would take back the project, the expansion of Heathrow returned to the agenda, and the main force was billions to the existing transportation infrastructure needed if the government or airport was built if a third runway was built. He said he must fund the pound upgrade.
He said the TFL should consider additional services at the Elizabeth Line Rail Link and upgrade to the Piccadilly Line.
The Elizabeth Line Rail Link heads east and west across London to Heathrow Airport ©William Barton/Alamy
He added that creating new railway links to the south and west and upgrading roads will also need to be considered.
“TFL cannot expect to expand its services from its own money to Heathrow. We are not only able to use that fund,” he said.
With the new blow to TFL’s finances, the main said he expected passenger revenue to be lower than forecasts for the current fiscal year.
He denounced fewer people travelling than expected, citing the economic environment and cited evidence that more jobs have been created than within London.
TFL’s latest financial figures, released in December, are projected to have passenger revenue of £5.3 billion for fiscal year 2024-25, £200 million less than expected.
“I think we need to continue to see ways to encourage people to come to cities more frequently, especially in collaboration with employers,” he said.
The Lord’s comments echoed Sir Sadiq Khan, Mayor of London, who warned of an increase in flexible work. This month, Khan warned that the capital “can’t afford” to become a city with “center hollowed out.”
Still, TFL requires office-based staff to be in the office.
“I think the focus on whether people should be in the office depends heavily on the sector you work for. If you take on our business, I would be experiencing our customers. “I want to go out to people to networks where they are experiencing what they are.”
