Transport for London Quarterly Performance Report Quarter 1 2017/18
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Appendix 4 Transport for London quarterly performance report Quarter 1 2017/18 About Transport for London (TfL) Contents 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. 4 Introduction 27 Buses life is like in London, helping to realise We are in the final phases of completing the Mayor's vision for a 'City for All the Elizabeth line which, when it opens, will 6 Business at a glance 30 Rail Londoners'. We are committed to add 10 per cent to London's rail capacity. creating a fairer, greener, healthier and more prosperous city. The Mayor's Supporting the delivery of high-density, 8 Financial summary 35 Roads 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 10 Financial trends 38 Other operations by 2041. To make this a reality, we is good growth. We also use our own prioritise health and the quality of land to provide thousands of new people's experience in everything we do. affordable homes and our own supply 12 Borrowing and cash 43 Commercial Development chain creates tens of thousands of jobs We manage the city's 'red route' strategic and apprenticeships across the country. roads and, through collaboration with 14 Operational trends 46 Capital investment programme 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 18 Customer trends 49 Appendices 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 22 Underground 52 Glossary 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 We run most of London's public fares so everyone can afford to use public transport services, including the transport, using data and technology to London Underground, London Buses, make services intuitive and easy to use, the Docklands Light Railway, London and doing all we can to make streets and Overground, TfL Rail, London Trams, transport services accessible to all. We London River Services, London Dial-a- reinvest every penny of our income to Ride, Victoria Coach Station, Santander continually improve transport networks Cycles and the Emirates Air Line. The for the people that use them every day. quality and accessibility of these services is fundamental to Londoners' quality None of this would be possible without of life. By improving and expanding the support of boroughs, communities The financial information included in the report is unaudited and does not constitute public transport, we can make people's and other partners who we work with TfL’s statutory accounts. TfL’s last audited Statement of Accounts for the year ended lives easier and increase the appeal of to improve our services. We all need 31 March 2016 was published on 28 July 2016. TfL's unaudited draft Statement of sustainable travel over private car use. to pull together to deliver the Mayor's Accounts for the year ended 31 March 2017 is available online. Transport Strategy; by doing so we can create a better city as London grows. Definitions of terms used in the report are included in the glossary. Transport for London quarterly performance report 3 Introduction This Quarterly Performance Report covers the period from 1 April to 24 June 2017, and is the first performance report for the financial year 2017/18. As in previous reports, trend graphs show both the quarter-by-quarter comparison over the past 15 months and also the year- to-date comparative analysis for the past five years. We are successfully reducing our operating costs for the first time in our history. Overall our net cost of operations is, however, £23m (14 per cent) higher than last year; this is due to reductions in fares revenue and General Grant from central government. Overall passenger numbers are down on last year, largely due to the impact of the timing of Easter, but passenger numbers are down 0.9 per cent on a like-for-like basis on the Underground. There is a small increase in average fares as a result of increases in ticket prices not controlled by the Mayor, but this does not compensate for lower passenger numbers, and fares income is down by £23m. Day-to-day operating costs have continued to decrease, as our cost reduction plans take effect, and are £51m (-4 per cent) lower than Q1 last year. We expect costs to continue to reduce as the year progresses following the phased implementation of our transformation programme, designed to respond to the Mayor’s challenge to reduce costs. The Capital Account shows a modest decrease in capital expenditure, from £825m in Q1 2016/17 to £722m this year. This is driven by lower Crossrail construction costs and reduced expenditure on capital renewals, as some of the A tribute larger station upgrade programmes near completion. Ian Nunn, our Chief Finance Officer, sadly passed away in July. Reducing operating costs and delivering value for This Quarterly Performance Report is a testament to money, while making operations safer, more reliable the enormous contribution Ian made to the organisation and more efficient, is central to our long-term financial and all the work he did to improve the transparency and stability. Our focus for the rest of the year remains on quality of our financial reporting. He was an incredibly ensuring that we stay on track to deliver. charismatic leader and a valued colleague. I know he will be hugely missed by all those he worked with. Simon Kilonback Sarah Bradley Acting Chief Group Financial Controller Mike Brown Finance Officer Commissioner 4 Introduction Transport for London quarterly performance report 5 Business at a glance Keeping London moving, working and growing to make life in our city better How we report on our business Facts and figures* Underground Buses 9,600 Total number of buses on the km km TfL network 680 580 Rail TfL-operated Rail and TfL-operated Underground routes highways Roads 940 Other Total number 6,350 of trains on the Total number of traffic TfL network Commercial signals that TfL operates Development Finances at a glance* Total fares* Total costs* (excluding depreciation) £0.8bn (8%) Use of £1.5bn borrowing £2.7bn (32%) £6.2bn and cash Other Crossrail (57%) £1.1bn Grants reserves income grants Fares (62%) (11%) £2.5bn £2.0bn £0.7bn £0.2bn £4.7bn £1.6bn (16%) Sources of funds £0.4bn 35% (3%) £10.1bn spent renewing £0.5bn and improving the (11%) network through one of the largest capital investment programmes 65% in Europe. spent on running the Total: £4.7bn Total: £10.1bn network every day. ▀ Underground ▀ Rail ▀ Buses ▀ Operating costs ▀ New capital investment ▀ Capital renewals ▀ Crossrail ▀ Net financing *Based on full year 2016/17 6 Business at a glance Transport for London quarterly performance report 7 Financial summary Performance this quarter Operating account Cash flow summary TfL Group Q1 Q1 TfL Group Q1 Q1 (£m) 2017/18 2016/17 Variance (£m) 2017/18 2016/17 Variance Fares income 1,079 1,102 -2% Net cost of operations (185) (162) 14% Other operating income 160 162 -1% Depreciation and amortisation 252 251 0% Total operating income 1,239 1,264 -2% Net capital account (379) (536) -29% General Grant 53 103 -49% Borrowing 150 – – Business Rates Retention 231 231 0% Working capital movements 634 (31) – Other revenue grants 11 7 57% Increase/(decrease) in cash balances 472 (478) Total income 1,534 1,605 -4% Operating cost (1,371) (1,422) -4% Passenger journeys analysis Net operating surplus 163 183 -11% Q1 Q1 Depreciation and amortisation (252) (251) 0% 2017/18 2016/17 Variance Net cost of operations before financing (89) (68) 31% Number of passenger journeys (millions) 938 966 -3% Net financing costs (96) (94) 2% Average fare income per journey (£) 1.15 1.14 1% Net cost of operations (185) (162) 14% Average total income per journey (£) 1.64 1.66 -1% Operating cost per journey (£) (1.46) (1.47) -1% Capital account Total cost per journey before financing (£) (1.73) (1.73) 0% TfL Group Q1 Q1 (£m) 2017/18 2016/17 Variance Total income is £71m lower than last year, Total capital expenditure was £722m, Capital renewals (134) (186) -28% with fares income down two per cent. with almost half of this being investment New capital investment (250) (239) 5% There have been fewer passenger journeys in Crossrail. Capital renewals are £52m Crossrail (338) (400) -16% across the network partly owing to the lower than last year because of the quarter having one less day this year and near completion of station upgrade Total capital expenditure (722) (825) -12% the timing of Easter.