London’s transport infrastructure will get a £250m boost in 2024 thanks to a funding package from the government. 

Ministers and Transport for London (TfL) have agreed on a capital funding settlement for next year to upgrade London’s transport system.

Transport Secretary Mark Harper said the investment will enable TfL to continue to deliver its current capital programme and its committed major capital projects – including the delivery of the Piccadilly Line upgrade phase 1.

Andy Lord, London's Transport Commissioner, said: “Through a huge effort to reduce costs and rebuild our ridership and revenue following the pandemic, TfL is now on track to be financially sustainable in terms of its day-to-day operations. We are also able to cover the cost of the majority of our capital investment.

“We, alongside London’s business stakeholders and others, have consistently made the case that additional Government support for capital investment in transport is needed if we are to be able to continue to deliver vital improvements to London’s transport network, unlock new homes and support growth across London and the UK.

“It is good news that we have now reached an agreement with the Government on the capital support that they will provide over the next year, and we are grateful for the support. 

“However, we will now need to reassess our recent draft business plan and address the impact of the continuing shortfall in funding. That work is underway so that we can confirm as soon as possible what we will deliver for London."

Last month TfL recorded its highest passenger figures on the capital’s Tube network since the pandemic of March 2020 – it also called on the government to confirm capital investment support for 2024/25.  

Transport Secretary Mark Harper said: “The current longer-term settlement will end in March 2024, and I continue to encourage TfL to modernise and to become a modern, effective, efficient and financially stable operator. 

“Government support has enabled TfL to be on track to being financially sustainable and this capital settlement therefore requires TfL to demonstrate to government that it is financially sustainable at the end of March 2024, and it will provide to government in July 2024 its plan demonstrating how it will maintain and strengthen its financial sustainability from the financial year 2024 to 2025.

“The decision to provide capital funding to TfL was made at a time when government is also facing significant financial pressures, as is the rest of the country. 

“Across the board the government has taken difficult decisions on funding to support those who are hit hardest by rising costs. 

“This is a settlement that is fair and proportionate to London whilst also taking into account funding provided elsewhere in the country and the cost to the national taxpayer, at a time of great pressure on national finances.

“Through all of this, government is continuing to work with the Mayor and TfL to ensure London’s transport system delivers for the public and businesses and contributes to the country’s economy.”

Delivery of the Piccadilly Line upgrade is expected to support an estimated 700 skilled jobs with a further estimated 250 jobs created in construction and up to 1,700 indirectly in the supply chain.

Since March 2020, the government has provided TfL with almost £6.4bn of funding to maintain service levels, support the delivery of major capital projects as well as passenger revenue protection. 

This is on top of around £1.9bn per annum of retained business rates for transport, including over £1bn per annum for capital investment.