Transport for London Quarterly Performance Report Quarter 3 2020/21 (19 September – 12 December 2020) Contents
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Appendix 7 Transport for London quarterly performance report Quarter 3 2020/21 (19 September – 12 December 2020) Contents 3 Introduction 11 Passenger journeys 17 Major projects 4 Business at a glance 12 Underground 19 Property 5 Financial summary 13 Elizabeth line 20 Media 7 Financial trends 14 Buses, streets and other operations 21 Appendices 9 Debt and cash 16 Rail The financial information included in the report is unaudited and does not constitute TfL’s statutory accounts. TfL’s last audited Statement of Accounts for the year ending 31 March 2020 was published in August 2020. Transport for London quarterly performance report 2 Introduction The third quarter of the financial year is revenue and demand, and includes £160m losses. We continue to keep our costs low With the actions we have taken and the usually one where the darker, shorter days, of net savings we committed to making as through tight cost controls, non-critical funding support from the Government, we are lit up by festive cheer. There’s a buzz in part of the new agreement for the second role recruitment freeze, deferral of non- have been able to preserve our cash position the city and people are out having a good half of the year. safety or priority critical renewals work and so we can meet our financial obligations and time, shopping for presents and seeing investment, and progressing our long-term continue to operate. As we go into Q4, we are their friends and families. It was certainly Our Q3 results show we are on track savings programme. This includes London working with the Government and the GLA different this time – a harder one for many against budget. The deficit on our day-to- Underground supply chain savings, savings on a funding and financing package for 2021/22, as we played our part by staying at home day cost of operations, factoring in the from bus contracts, as well as one-off along with a longer-term funding solution and rethinking our journeys. Restrictions Government support, stands at £1bn, which savings from lower network costs during the offering a stable and sustainable way forward on travel became tighter over the period, is around £30m better than expected. This first national lockdown at the start of the as proposed in our Financial Sustainability with only small windows where things felt is still £890m worse than last year driven by pandemic. By lowering our core operating Plan, which we published on 15 January. closer to ‘normal’. Throughout the third passenger demand reductions. costs, we have partially offset the additional quarter, our focus has been on keeping cost pressures related to the coronavirus We are firmly focused on achieving the best our services running and our operations Passenger demand remains significantly pandemic such as enhanced cleaning, outcome for London. We have a vital role safe, while responding to the changes in lower than last year, with passenger income Personal Protective Equipment (PPE) and to play in delivering a green recovery for Government advice. around £2.3bn, or 70 per cent, lower. At the social distancing measures. London and the UK. A massive thank you to end of the quarter, journeys on the Tube all our people for the work you do to keep On 9 December 2020, our Board approved were 66 per cent down on last year and bus The Capital account budget includes the the city moving in these challenging times. an updated TfL Budget, which our financial journeys 44 per cent lower. Journey levels savings in the investment programme we performance will be measured against have reduced further since the end of the made to meet the additional £160m savings for the remainder of 2020/21. This was our quarter, following London entering Tier 4 target for the funding support for the Simon Kilonback submission to the GLA Budget process and and then a new national lock down from second half of the year. This included a Chief Finance Officer supersedes the Revised Budget approved early January 2021, the outlook for the rest review across the investment programme in July. This Budget includes up to £1.8bn of of the year remains uncertain. The financial for deliverability, sequencing, efficiencies funding and is in line with the Government risk on this is mitigated through our funding and scope of major projects. Overall, our Tony King financing agreement covering the six agreement with Government for the second spend on capital renewals and new capital Group Finance Director months from 31 October to 31 March 2021. It half of the year, as we will receive revenue investment is significantly below last year’s was updated for the latest assumptions on funding, to an agreed level, for income levels with almost 25 per cent lower spend. Transport for London quarterly performance report 3 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 2020/21 TfL (GLA) Budget at a glance Use of borrowing, Cash Trains on the working capital Other Passenger Crossrail reserve Underground TfL network Grants and cash reserves income income funding movements London Underground 979 £4.7bn £0.6bn £0.9bn £1.5bn £0.8bn £0.7bn Elizabeth line Sources of funds Currently operating as TfL Rail £9.2bn 19% spent on renewing and improving Buses, streets and the network through one of the 81% largest capital investment other operations spent on running and operating programmes in Europe the network every day London Buses, Transport for London 580km Road Network, London Dial-a-Ride, TfL-operated London River Services, Santander Cycles, highways Victoria Coach Station and Emirates Air Line Total passenger income Total costs Rail £0.5bn DLR, London Overground and London Trams 755km (5%) TfL-operated Rail and London £0.7bn £0.8bn Underground routes Major projects (47%) (9%) Responsible for our largest and £0.7bn £0.9bn £6.6bn most complex projects (47%) (10%) (72%) Property development £1.5bn £9.2bn total passenger total costs Our commercial and residential estate income and building portfolio Buses on the TfL network £0.4bn 9,330 (4%) Media £0.1bn Advertising estate and digital (6%) marketing infrastructure 6,300 Traffic signals operated by TfL London Underground Rail Operating cost Capital renewals Buses Crossrail New capital investment Net financing Transport for London quarterly performance report 4 Financial summary Performance in the year to date Operating account Capital account TfL Group Q3 Q3 TfL Q3 TfL Group Q3 Q3 TfL Q3 (£m) 2020/21 (GLA) Budget Variance 2019/20 Variance (£m) 2020/21 (GLA) Budget Variance 2019/20 Variance Passenger income 1,157 1,049 108 3,416 (2,259) New capital investment (513) (529) 16 (648) 135 Other operating income 522 531 (9) 709 (187) Crossrail (522) (537) 15 (733) 211 Total operating income 1,679 1,580 99 4,125 (2,446) Total capital expenditure (1,035) (1,066) 31 (1,381) 346 Business Rates Retention 659 659 - 649 10 Financed by: Furlough grant 58 60 (2) - 58 Investment grant 619 619 - 607 12 Other revenue grants 22 20 2 58 (36) Property and asset receipts 8 52 (44) 150 (142) Total income 2,418 2,319 99 4,832 (2,414) Borrowing (TfL) 507 507 - 269 238 Operating cost (4,398) (4,427) 29 (4,340) (58) Borrowing (Crossrail) 473 484 (11) - 473 Net operating (deficit)/surplus (1,980) (2,108) 128 492 (2,472) Crossrail funding sources 68 68 - 607 (539) Net financing costs (318) (318) - (309) (9) Other capital grants 100 94 6 127 (27) Net (cost)/surplus of operations before financing (2,298) (2,426) 128 183 (2,481) Total 1,775 1,824 (49) 1,760 15 Capital renewals (202) (213) 11 (293) 91 Net capital account 740 758 (18) 379 361 Net cost of operations (2,500) (2,639) 139 (110) (2,390) Extraordinary grant 1,497 1,606 (109) - 1,497 Net cost of operations after Extraordinary grant (1,003) (1,033) 30 (110) (893) income 66 per cent down, and other last year and bus journeys 44 per cent operating income – including Congestion lower. The outlook for this year remains Charge, Ultra Low Emission Zone (ULEZ), uncertain as since the end of Q3 we have Since the start of the coronavirus addition, TfL has committed to meeting advertising and property revenue – 26 seen London enter Tier 4 restrictions in pandemic, we have seen a significant a number of conditions, including making per cent lower. Through our savings December, and the new national lock down decline in income, with passenger income £160m of net savings in the second half of programme, recruitment controls, even from early January 2021. The financial risk – 70 per cent of our total income to fund the year compared to the Revised Budget, stronger financial oversight, and from lower from lower journeys has been mitigated in day-to-day operations – lower by around investing in Streetspace for London, and network costs at the start of the pandemic, the funding agreement for the second half £80m per week in late March 2020. The producing a management plan to achieve we have kept operating costs low. After of the year with the Government, where dramatic drop in revenue has required financial sustainability in the medium to adjusting for new coronavirus-related costs we will receive revenue top up (up to an ongoing support from the Government. In long term (the Financial Sustainability Plan). (including PPE, cleaning, and bus driver agreed level) for income losses. May 2020 we agreed a support package of protective screens), costs are almost £80m £1.6bn, to cover the first half of the year, In the year to date, the net cost of lower than last year.