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It is one of a series of options suggested to the mayor as a way to restore TfL’s long-term revenue, which has collapsed due to Covid.
- Elimination of the Night Tube and the “Boris bike” bike rental program
- Reduction of bus routes in the suburbs
- Reform of the “expensive” pension plan for TfL employees
- Keeping the ban on free travel for retirees in the morning rush
- Closing of some metro stations on weekends
Khan has asked TfL officials to investigate the “feasibility” of introducing a “Greater London border charge” of £ 3.50, although it would not be implemented for at least two years to allow the economy to recover from the pandemic. .
It would be paid by registered vehicle drivers outside the 33 boroughs and would be in addition to the £ 15 congestion charge and the £ 12.50 ultra-low emission zone (Ulez), which expands to the suburbs on 25 October next year.
There are 1.3 million car trips to Greater London every day of the week. An estimated £ 3.50 tax would raise around £ 500 million a year to reinvest in the capital’s transport network, while reducing incoming traffic by 10-15 percent.
Drivers of the most polluting vehicles could be charged more to incentivize drivers to switch to “greener” cars.
The mayor sees the proposal as an alternative option if the government continues to reject TfL’s long-standing demand to reform the rules on excise duties on vehicles.
London motorists pay £ 500 million a year in VED, but only a fraction is returned to the capital, meaning that tube passengers effectively subsidize road repairs in London.
Khan said the government had not “played fair” in financing TfL after it lost its annual subsidy of £ 700 million a year, forcing it to rely on tariffs for three-quarters of its income.
He said: “Londoners pay £ 500 million in excise duty each year, which is then spent on road maintenance outside the capital. It is not fair in London for our drivers to subsidize the rest of the country’s roads. and get nothing in return.
“If ministers are not prepared to play fair, then we will have to consider other options to address this injustice, such as asking people who live outside of London and travel by car to Greater London to pay a modest fee, which would be reinvested in the London transport network “.
This week, TfL confirmed it had no cash to continue major projects like Crossrail 2, the Bakerloo Line extension and the DLR extension to Thamesmead, and that the rebuilding of South Kensington Tube and the Sutton Tram extension were also halted. . The desperately needed new signage on the Piccadilly Line is also not funded.
Passenger revenue this year is only expected to reach 60 percent of pre-pandemic levels and 80 percent next year. TfL bosses are desperate to find a way to secure long-term funding, even for new projects.
Metro and bus fares should already increase by 2.6 percent in January. TfL predicts that charges paid by motorists will nearly triple from £ 408 million this year to £ 1.15 billion by 2022/23, largely as a result of Ulez’s expansion.
The independent report on TfL’s long-term finances, released today, was commissioned by the mayor and TfL board in July.
Sadiq khan
/ Jonathan Brady / PA Wire )He said that additional charging to road users was a “sound” option and “should be part of a balanced package of interventions to address the sustainability of London transport.”
The report added: “It would not be correct to increase fares to public transport users without also addressing the income of road users.
TfL already has a network of cameras on the edge of Greater London to enforce the low emission zone that applies to heavy vehicles. More cameras are being installed on the north and south circular roads for the expansion of Ulez.
A public consultation would be required before a Greater London boundary charge could be imposed on non-Londoners.
Today’s report also said that the introduction of an “outer ring” in London’s inner congestion charge zone (at a lower rate than in central London) could raise £ 500 million a year.
In a list of cost-saving “options”, he said reducing off-peak subway services and eliminating the night tube, which has failed during the pandemic, would save £ 35 million.
Closing 10 tube stations on weekends and leaving some stations unstaffed would save £ 18 million.
Eliminating the 150 lowest-income bus routes, most of which are on the outskirts of London, would save £ 301 million. This was not recommended as it would leave many communities without access to public transportation and increase car use, but minor reductions in bus routes could be “justifiable”.
Eliminating Santander’s bike hire scheme, the Woolwich ferry, which would require a change in the law, and river services would save £ 48 million.
Continuing with the suspension of the Freedom Pass at the morning peak and eliminating the 60+ pass could increase revenue by £ 156 million.
The report said that TfL’s pension scheme was “outdated and needs to be reformed”, saving £ 100 million.
A spokesman for the mayor said the report’s authors had suggested the establishment of a pension commission, but added that “no one’s pension is at risk.”
