Sadiq Khan: Ministers must not link Tube fares to soaring inflation

Ministers must recognise Londoners are worried how to make ends meet, Sadiq Khan says
Ross Lydall @RossLydall16 August 2022

Mayor Sadiq Khan has vowed to “resist” any attempt by the Government to link the annual increase in Tube and bus fares to the soaring rate of inflation. Transport for London fares are normally based on the July RPI rate of inflation, which is due to be announced on Wednesday.

Last month’s rate was 11.8 per cent and there are fears of it exceeding 12 per cent — which would lead to a record rise in TfL fares from next March.

Mr Khan said double-digit increases would feel like the Government was seeking to “punish” Londoners at a time millions are battling with the cost-of-living crisis and suffering real-term wage cuts due to inflation. He told BBC London: “That is not on. That is not fair. I will resist that.”

Earlier this week, the Department for Transport (DfT) said national rail fares would not rise by as much as the July RPI rate — but made no promise regarding TfL fares.

TfL has had to follow Government orders to increase tickets by RPI+1 for the last two years as a condition of its pandemic bailouts. This resulted in TfL fares increasing by 4.8 per cent in March — while rail fares were limited to 3.8 per cent. It is thought the fifth and final funding settlement that TfL is yet to reach with the Government will place an obligation on the Mayor to increase fares next year.

Mr Khan told the Standard: “If there is a condition in the support we need from the Government — which we only need because of the pandemic — to increase fares by RPI or RPI+1, that will mean public transport fares going up by 10, 12, 13 per cent in March.

“It is important for the Government to recognise that Londoners are really worried how to make ends meet. I feel like the Government, for ideological or dogmatic reasons, is wanting to punish Londoners at a time they need support. Londoners will only take so much.”

Mr Khan described the failure to reach a funding deal with the Government as “ridiculous”. TfL has been offered a two-year capital deal worth £3.6 billion and is also seeking about £900 million in day-to-day funding, but there are concerns about the conditions attached by the DfT. These are believed to include the requirement to cut the £400 million annual cost to TfL of its staff pension scheme — one reason why the RMT has called another Tube strike on Friday.

The DfT has already provided about £5 billion of emergency funding to keep TfL afloat. But without long-term funding guarantees, TfL cannot enter into contracts for “big ticket” items.

Mr Khan said TfL was “living hand to mouth”. He added: “The Government gave us a take it or leave it offer a few weeks ago. I’m trying to make sure we get the least worst deal for our capital.”

A DfT spokesman said: “Over the past two years, the Government has provided TfL with more than £5 billion of funding and ensured our capital’s transport system kept running throughout the pandemic. The latest deal we have offered would take this funding to over £6 billion, as well as supporting more than £3.6 billion worth of major projects — such as Tube upgrades and extensions and new active travel schemes to allow for less congestion and pollution.

“It is clear we are committed to supporting London’s transport network, but this must only be done in a way that is fair and represents value for money.

“This deal, which would transform the travel for millions of Londoners, remains on the table as we continue our discussions with TfL.”

Passengers are already facing misery on Friday when London Underground and Overground go on strike.

About 10,000 members of the RMT union working on the Tube, as well as 400 Overground staff working at Arriva Rail London, will strike for 24 hours in separate disputes over jobs and pay.

The industrial action falls between two 24-hour walkouts by RMT members at Network Rail and 14 train operators on Thursday and Saturday.

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