TfL has been granted another short-term extension to its emergency funding deal by the Government, it has been announced.
The £200million bailout agreed in February was set to expire on June 24 but a stalemate in negotiations over a long-term funding agreement saw the deadline extended until 11.59pm on July 13.
But with just hours to go until that deadline, TfL announced yet another short-term extension. This time they have until July 28.
In a statement, TfL revealed a two-week extension had been agreed with the Department for Transport so that discussions over a longer-term deal could continue.
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A TfL spokesperson said: “We have agreed with the Government that our existing funding agreement will be extended until July 28, 2022 so these discussions can be continued. Whilst in receipt of Government support, we have worked hard to progress all conditions placed on TfL, and continue to maintain that we have met them all.
“Working together, we must achieve a longer term capital funding settlement that ensures London’s transport network can remain reliable and efficient, can support the jobs and new homes that rely upon it and can support the economic recovery of the capital and the country as a whole. We hope these discussions can be concluded successfully soon.”
At the start of the month, Mayor of London Sadiq Khan requested an “urgent” meeting with Transport Secretary Grant Shapps as he accepted the need to “reset the relationship” between City Hall and the Government.
But Shapps has been side-tracked by his bid to become the next leader of the Conservative Party following Boris Johnson’s resignation, before dropping out of the race on Tuesday to back Rishi Sunak’s bid.
TfL and the Department for Transport now have two weeks to hash out a deal to resolve the financial situation that threatens to plunge London’s transport network into a “managed decline” scenario.
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