Sadiq Khan warned that ‘the government will take control of TfL if the demands are not met’

The government has reportedly threatened to take over Transport for London unless Sadiq Khan agrees to a package of measures that includes a higher city tax for Londoners.

A larger congestion fare zone and higher tube and bus fares are also among the measures said to be submitted to the Mayor of London.

Transportation Secretary Grant Shapps proposed the measures, whereby, in exchange, TfL would receive six months of bailout funds that will last from now until Match next year.

He wrote to Mr. Khan telling him that the Government would take “reserve legislative powers that would allow us, if necessary, to direct TfL” if the measures were not followed.

Shapps, in a letter seen by the Financial Times, added that the Downing Street seizure of TfL would be combined with an additional series of “short-term financing arrangements.”

The demands on the Mayor of London included a call for Londoners to pay more city taxes to improve TfL’s finances and for Khan to start “reforming pensions and the workplace” at TfL.

The letter also asked Khan to extend the congestion charging zone in central London to cover the same areas as the Ultra Low Emission Zone from October 2021, the Times reports.

The mayor of London responded with a letter of his own on October 6, reportedly rejecting Shapps’ demands, saying that an expansion of the congestion zone would have negative economic consequences and that a municipal tax supplement would “still deposit. more trust in an already broken form of taxation and it would be regressive ”.

A spokesman for the Mayor of London said: “Negotiations with the government are continuing, but suffice it to say that there is simply no way a mayor could accept conditions of this nature, which would make it difficult to fight the virus and slow down London’s economic recovery . at the worst possible moment ”.

Meanwhile, a Department of Transport spokesperson said: “We have agreed to an extension of the support period and the transfer of unspent funds from the Extraordinary Transport Financing Agreement for London, allowing more time for negotiations for a new agreement.

“These discussions will ensure that London has a secure and reliable network. It would be inappropriate to reveal more details at this stage. “

The government agreed on Friday to extend its financial support to TfL for two weeks while negotiations on a new bailout continue.

TfL boss Andy Byford described the two-week extension as a “sensible pragmatic solution” that “keeps people’s minds focused.”

He added: “Now we can do this deal. We really are very close, and it is a top priority for all of us to get this across the line, and I think the two weeks will be enough. “

TfL’s finances have been badly affected by the drop in travel caused by the coronavirus pandemic.

A £ 1.6bn bailout agreed to with Khan in May put the funds through Saturday.

Last month it was reported that Khan was seeking a £ 5.7 billion ransom to keep London’s transport system running for the next 18 months.