London’s real estate sector has launched fresh calls for a long-term funding package for Transport for London (TfL) ahead of the upcoming Spring Budget.
The London Property Alliance, which represents over 400 real estate developers, investors and advisers, said the cash would ensure “critical” upgrades are delivered, while supporting the return of workers and visitors to the capital’s city centre following the pandemic.
Cash-strapped TfL has struggled for years after the pandemic wiped out passenger numbers. The operator was given £250m in capital funding from the government for 2024/25, but it was only half of the £500m it had requested.
Among major improvements needed include the replacement of ageing Bakerloo Line trains, which are now 16 years beyond their intended lifespan.
The failure rate on the Bakerloo is over four times as high as that on the Victoria Line, while a 370 per cent rise in cancellations over the last decade has seen 630,500 customer hours lost, according to a report from Central London Forward.
The Central line has also been plagued by problems in recent weeks, with TfL citing an “abnormally high number of motor failures” on its also-ageing train fleet, leading to a reduced service.
Charles Begley, Chief Executive of London Property Alliance (LPA), said: “TfL is facing huge funding challenges over the next three years, limiting its ability to deliver critical upgrades which will avoid a terminal decline in services, support active travel and introduce flexible fares to address the uneven return of workers and visitors.
“The frictionless movement of workers and visitors is vital to drive productivity and the agglomeration effects of central London. We need the government to commit to a three-year funding programme and promote greater fiscal devolution so we can ensure our transport system is fit for the future and competes on the global stage.”
The LPA is requesting a three-year funding package for TfL which would also allow the Mayor of London to introduce more flexible fare models following a three-month ‘off-peak Friday’ trial set to launch in March.
It said retail and leisure sectors would be “significant beneficiaries from increased number of workers,” amid calls for the government to reinstate VAT-free shopping, which was axed in 2021, for international visitors.
Begley added: “The government must also look at immediate steps to boost London’s shopping and leisure destinations as we face a period of low or negative growth.”
“It needs to reinstate tax free shopping which puts London at a significant disadvantage to its European rivals, and there must be no further delay in adjusting the underlying level of business rates for retail and hospitality businesses.”
The Treasury was contacted for comment.