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Sadiq Khan warns major housing schemes at risk without new government bailout for TfL
London mayor Sadiq Khan has stepped up his efforts to get a fresh government bailout for Transport for London (TfL) by warning that thousands of homes may not be built without an agreement.
The TfL secured a £1.08bn funding deal from the government in June – its third bailout since the beginning of the pandemic – but that agreement is due to expire this Saturday (11 December).
Today the London mayor has argued that without new funding, the delivery of a significant number of new homes could be at risk leading to a worsening of the housing crisis.
The schemes at risk, according to the mayor’s office, are: 30,000 new homes in Beckton Riverside and Greenwich, which would be unlocked by an extension of the Docklands Light Railway towards Thamesmead and Beckton; 6,000 homes planned for Colindale Station in Barnet; and a second station entrance at Walthamstow Central to support a major redevelopment around the nearby shopping centre.
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Mr Khan said: “Failing to adequately fund TfL is a dereliction of the government’s duty to our capital city, the people of London and the country as a whole.
“We are in the middle of a housing crisis that cannot be solved if parts of the capital remain cut off from transport links or if vital schemes that improve access to town centres are not able to be delivered.”
Mr Khan has also previously warned that without a long-term deal, more than 100 bus routes could be withdrawn and the Tube will run less frequently on some lines, leading to potential overcrowding.
He said further operational support will be needed from the government through to the end of the current financial year, while a further roughly £1.2bn will be needed in 2022/23.
The crisis has come about as the TfL’s already strained finances have been crippled by lower income from fares as passenger numbers dropped amid the pandemic.
In 2015, the TfL announced plans to deliver 10,000 homes on the land it owns over the next decade. However, as of this summer, TfL had started just 1,567 homes, of which 266 have completed.
As a condition of the last funding deal struck, the TfL and government said they would “agree a plan for housing delivery through a dedicated commercial property company that meets the shared ambitions of the mayor and [government] to deliver housing in a high-demand area and to provide an increased revenue stream”.
Following this, the TfL published plans for a self-financing property company which it said could have the potential to deliver between 10,000 and 46,000 homes.
A Department for Transport spokesperson said: “We have repeatedly shown our commitment to supporting London’s transport network through the pandemic, providing more than £4bn in emergency funding to Transport for London.
“We will continue to discuss any further funding requirements with TfL and the mayor, and any support provided will focus on getting TfL back onto a sustainable financial footing in a way that is fair to taxpayers across the country.”
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