Transport for London chief Andy Byford has refused to rule out a hike in fare prices following the agreement of the long-term funding deal.
TfL and the Government agreed a long-term funding package on Wednesday in what Mr Byford, the Commissioner for London’s transport network, labelled as “the best deal we could have struck” at the time.
While a new £3.6billion funding deal has been agreed, Mr Byford refused to comment on whether fares would be increased next year with the deal stating it expects fares to rise next year and for 2023/24.
Asked whether fares will increase for Londoners next year, Mr Byford told On London: “That will be decided nearer the time.”
Adding: “It will be a matter for TfL and the board and the Mayor.”
Sadiq Khan has previously warned of fare hikes during negotiations but the deal stated “it is for the Mayor to decide whether to increase fares and should he decide not to, no additional funding will be provided by the Government”.
In line with previous short-term funding agreements, Mr Khan agreed to a rise fares in line with the retail price index (RPI) plus one percentage point.
As of July, the RPI stood at 12.3 per cent but may increase to 14 per cent at the beginning of next year coupled with record-brekaing energy costs in the UK.
Although services will not be reduced TfL has warned a £740million funding gap remains.
Describing the deal as “far from ideal”, Mr Khan said: “The Government is still leaving TfL with a significant funding gap, meaning we will likely have to increase fares in the future and still proceed with some cuts to bus services.”
Mr Khan added: “There are onerous strings attached to the deal, such as the Government’s condition requiring TfL to come up with options for reform of TfL’s pension scheme at pace, which could well lead to more industrial action and more disruption for commuters.
“These are things we have had no choice but to accept in order to get the deal over the line to avoid TfL becoming bankrupt, to save the jobs of thousands of transport workers and to keep trains, tubes and buses running across our city.
“The sole cause of TfL’s financial crisis was the impact of the pandemic so it’s simply wrong to punish Londoners and transport workers in this way.”
