The British government will pump £ 1. 6 billion into London ’s public transport system to restore services and help prevent overcrowding as people return to work , operator Transport for London ( TfL ) said on Friday .
London mayor Sadiq Khan is now expected to restore full bus and train services , having warned they would be cut further without emergency state support , owing to the coronavirus epidemic .
TfL informed the London Stock Exchange on Friday that “ an extraordinary funding and financing support package has been agreed between TfL and the Department for Transport to contribute towards TfL ’s forecast funding shortfall .
“ The funding package is based on the assumption that the funding shortfall will be £1 .6 billion ( $ 19 .2 , 1 .8 billion euros ) for the period 1 April 2020 to 17 October 2020. ”
TfL has seen a 90 – per cent drop in revenue from ticket sales during the seven -week coronavirus lockdown as passenger numbers slumped .
It has been paying the £ 600 million monthly operating bill from cash reserves but said the situation was no longer sustainable .
Khan on Thursday warned that without government funding , bus and Tube services would have to be cut to save money, as TfL tried to balance its books .
The government is urging people who cannot work from home to return to work in an easing of stay -at- home measures, while also calling for people to avoid public transport if possible.
The deal comprises a £ 1 .095 billion grant and a £ 505 million loan , with the potential for £ 300 million more if there is a shortfall .
Khan will cede partial control of TfL , the local government body responsible for the capital’ s transport system , to the central government over the period of the bailout .
The mayor has warned commuters to expect a one -per cent rise in fares as the operator tries to claw back losses incurred during the virus outbreak.
