By Lucy Caukett
Transport for London (TfL) will need a £3.2 billion boost to balance its budget this year, board papers released ahead of today’s meeting show.
TFL risk running out of money, unless they strike a deal with the Government to address the huge gap in its finances in the next 48 hours
If the Government does not step in by Thursday, TfL will be forced to issue a Section 114 notice – the equivalent of a public body going bust.
The network expects to lose £4 billion this year because of coronavirus and will be forced to issue a Section 114 notice if no intervention is forthcoming from the British Government, it has said.The network was already heading for a £300 million deficit at the 2019/20 financial year before Covid-19 .
Deputy Mayor for Transport Heidi Alexander said at an emergency finance committee described the potential impact of a Section 114 as ”unthinkable”. She said:
“We have to reach an agreement with Government on this in the next 48 hours,” she said.
“I think the impact of the Section 114 notice is quite honestly unthinkable, with very serious implications for Tube and bus services in London,” she added.
Ms Alexander said the “back and forth” with Government was “becoming a monumental distraction”.
The Deputy Mayor said she had “spoken personally” with Transport Secretary Grant Shapps at the weekend.
“We now need Government at the very highest level to engage with us so that we can resolve this and move forward,” Ms Alexander warned.
TfL will need a £3.2 billion boost to balance its budget this year, board papers released ahead of today’s meeting show.
TfL which makes most of its revenues from advertising on the Tube and buses, and from the Congestion Charge in central London, has been hit badly by the Coronavirus crises.
The fall in tube journeys by 95 per cent during the Uk lockdown has seen them hit very hard.