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Business Plan 2019/20 to 2023/24 About Transport for London (Tfl)

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Business Plan 2019/20 to 2023/24 About Transport for London (Tfl) Transport for London Business Plan 2019/20 to 2023/24 About Transport for London (TfL) Part of the Greater London Authority We are moving ahead with many of family led by Mayor of London Sadiq London’s most significant infrastructure Khan, we are the integrated transport projects, using transport to unlock growth. authority responsible for delivering the We are working with partners on major Mayor’s aims for transport. projects like Crossrail 2 and the Bakerloo Line Extension that will deliver the new We have a key role in shaping what homes and jobs London and the UK need. life is like in London, helping to realise We are in the final phases of completing the the Mayor’s vision for a ‘City for All Elizabeth line which, when open, will add 10 Londoners’. We are committed to per cent to central London’s rail capacity. creating a fairer, greener, healthier and more prosperous city. The Mayor’s Supporting the delivery of high-density, Transport Strategy sets a target for 80 mixed-use developments that are per cent of all journeys to be made on planned around active and sustainable foot, by cycle or using public transport travel will ensure that London’s growth is by 2041. To make this a reality, we good growth. We also use our own land prioritise health and the quality of to provide thousands of new affordable people’s experience in everything we do. homes and our own supply chain creates tens of thousands of jobs and We manage the city’s red route strategic apprenticeships across the country. roads and, through collaboration with the London boroughs, can help shape We are committed to being an employer the character of all London’s streets. that is fully representative of the These are the places where Londoners community we serve, where everyone travel, work, shop and socialise. can realise their potential. Our aim is to Making them places for people to walk, be a fully inclusive employer, valuing and cycle and spend time will reduce car celebrating the diversity of our workforce dependency and improve air quality, to improve services for all Londoners. revitalise town centres, boost businesses and connect communities. We are constantly working to improve the city for everyone. This means freezing TfL We run most of London’s public fares so everyone can afford to use public transport services, including the London transport, using data and technology to Underground, London Buses, the DLR, make services intuitive and easy to use, London Overground, TfL Rail, London and doing all we can to make streets and Trams, London River Services, London transport services accessible to all. We Dial-a-Ride, Victoria Coach Station, reinvest every penny of our income to Santander Cycles and the Emirates continually improve transport networks Air Line. The quality and accessibility for the people who use them every day. of these services is fundamental to Londoners’ quality of life. By improving None of this would be possible without and expanding public transport, we can the support of boroughs, communities make people’s lives easier and increase and other partners who we work with to the appeal of sustainable travel over improve our services. We all need to pull private car use. together to deliver the Mayor’s Transport Strategy; by doing so we can create a better city as London grows. Contents 4 Forewords 46 Building a sustainable business 6 Sadiq Khan: My vision for London 48 Building financial stability 8 Mike Brown MVO: Overcoming 56 Borrowing new challenges 58 Long-term capital plan 10 The financial context 60 Facing our challenges 12 Delivering the Mayor’s 62 Developing diversity Transport Strategy 66 Our services 14 The strategy and vision 16 Making the vision a reality 68 Streets 18 Healthy Streets and healthy people 78 Buses 24 A good public transport experience 86 Rail 30 New homes and jobs 94 London Underground 34 Business at a glance 102 Elizabeth line 106 Other operations 36 Forecasting and trends 114 Commercial Development 38 Forecasting 120 Professional services 44 Operational trends 124 Appendix 127 TfL Group balance sheet 128 Major new capital investment Transport for London Business Plan 3 Image 1: Working to improve London’s transport future Forewords 6 Sadiq Khan: My vision for London 8 Mike Brown MVO: Overcoming new challenges 10 The financial context Transport for London Business Plan 5 Forewords Delivering the Mayor’s Forecasting and trends Building a Sadiq Khan Transport Strategy sustainable business My vision for London We must keep cutting costs, as we invest in London’s future. When I was elected in 2016, I was clear concessions and introduce the Hopper that TfL needed to become leaner and fare, making travel more affordable for more efficient. That’s why I challenged it millions of Londoners. I am convinced this to undertake the biggest organisational is where TfL’s efforts must continue to be overhaul in its history to help put it targeted as, above all else, it exists to serve on a sustainable financial footing. This the people of our city. meant major structural changes to remove duplication and reduce tiers of Like any large company, TfL must keep management, as well as cutting the use revising its Business Plan to reflect the of expensive temporary contracts and national economic context. The closer we negotiating better deals with suppliers. get to the UK leaving the European Union, the worse those forecasts become. It is no surprise that TfL’s demand forecasts are A well-functioning considerably lower than they were two transport network is years ago. the lifeblood of any great I have made clear to TfL’s leadership city, so we must keep where their focus must remain as they investing in ours respond to these financial pressures. It has already reduced its year-on-year, like- for-like operating costs for the first time Now, two and a half years on, it is a very in its history and this must become an different organisation. Under our direction, established trend. They must also continue TfL has been restructured to bring to prioritise the delivery of our Transport together previously disparate functions, Strategy, because the future of transport with a smaller senior management team. in London cannot be put at risk by the It has also substantially reduced its use uncertainty associated with Brexit. of consultants and ended an expensive, ineffective private partnership contract. A well-functioning transport network is the lifeblood of any great city, so we We have slimmed down TfL, while keeping must keep investing in ours. Over the a relentless focus on the safety and quality next five years, TfL will launch new safety of the services it runs. Despite losing, on measures, including a world-leading average, £700m a year in operating grant Bus Safety Programme; the Ultra Low from the Government, we have kept our Emission Zone alongside a host of hard- promise to freeze TfL fares, preserve hitting measures to clean up London’s air; 6 Forewords Forecasting and trends Building a Our services Appendix sustainable business and a large programme of major capacity improvements, including upgrades to four London Underground lines, the Northern Line Extension to Battersea and a major upgrade of Bank station. TfL will continue to develop plans to build Crossrail 2 and extend and upgrade the Bakerloo line. Also, the opening of the Elizabeth line will add 10 per cent to central London’s rail capacity. I was extremely disappointed and Image 2: Mayor Sadiq Khan frustrated when it was determined that the Elizabeth line would not be ready to open at the end of this year. As one of the In the next twelve months, there will joint sponsors, TfL’s immediate attention likely be a review of spending across must be on working with the Government the whole of Government. With an and Crossrail Limited to complete the uncertain future outside the European project, so that Londoners and businesses Union, investors need confidence that can start to see the benefits of the new London will be supported by genuine and infrastructure they have helped pay for. sustained investment. We know that delays cost money. Since Under my leadership – and with this the announcement at the end of August Business Plan in place – TfL will continue 2018, that the central section of the to bear down on costs so that it can keep Elizabeth line would be delayed, we have London moving and growing despite the been in detailed discussions with the very serious financial headwinds. But Government about how the additional this can only go so far. We have agreed a cost of this delay to Crossrail can be met. way to pay the extra costs for Crossrail, We have accepted that London should but not without extreme difficulty. Over pay any additional capital costs over the next year, we will continue to make time, and the Government has agreed to the case to the Government that it must assist with financing those costs in the recognise and play its part in supporting short term. However, the Government our capital’s economy and investing in has refused to provide any support for our infrastructure. the fare income TfL will forego because of the delay. Given that fare income from the Elizabeth line was part of the Government’s rationale for removing TfL’s operational grant funding in the first place, which means the Government is essentially forcing London to pay twice – first, with the removal of the operating grant and now in its refusal to assist with the revenue impact of the delay to the Sadiq Khan opening of the Elizabeth line.
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