The permanent secretary of the Department for Transport has criticized the London transport commissioner for neglecting to make a recommendation for long-term pension reform.
The protracted standoff on the financing of London’s public transportation system has worsened just days before its most recent agreement with the government expires.
Bernadette Kelly, the Department for Transport’s (DfT) most senior civil servant, notified Transport for London’s (TfL) commissioner Andy Byford last week that a formal dispute period had been triggered under the terms of its funding settlement.
“We also do not consider the subsequent responses, which indicate that a proposed method will be supplied in about 18 months, be consistent with our previous agreement, nor do they reflect an ambitious schedule for resolving this issue,” she said.
Reforming TfL’s retirement scheme has been a source of contention with the government for years, and has been a factor in a spate of strikes that have disrupted London’s transportation system in recent months.
The release of Ms. Kelly’s letter occurs just over a week before the expiration of a four-month financial agreement reached in February, with no indication that ministers are poised to propose a more comprehensive long-term solution.
Since the commencement of the epidemic, TfL’s future has been shrouded in uncertainty, with a decline in commuter traffic having a catastrophic effect on its income.
Despite TfL’s compliance with dozens of restrictions imposed by Whitehall, a string of short-term contracts has prompted severe criticism of the government from business groups, who allege that the delays were politically motivated.
Last week, Sadiq Khan, the mayor of London, warned that cuts to bus and Tube services under its “managed decline scenario” would need to begin immediately in the absence of a long-term financial plan.
Mr. Byford lauded the opening of the Elizabeth Line or Crossrail service by Transport for London last month as “a truly momentous day for the metropolis.”
The transport secretary, Grant Shapps, had previously criticized the news of the opening, which occurred shortly before the local elections.
Mr. Khan has subsequently written to the transport minister and Conservative MPs who opposed Boris Johnson’s leadership in this month’s vote of confidence, urging them to seek an improved funding settlement for TfL.
A TfL official stated, “The only reason we want assistance is because revenue from fares plummeted during the pandemic.
We are on target to attain financially sustainable operations by April 2023.
“At that point, we will no longer require operational funding support from the government, but we will require continuous backing for crucial capital investments if we are to prevent terrible implications for London’s transport network, including the possibility of managed decline.
Without adequate funds, we will be compelled to reduce service levels and reliability will diminish.
They noted that discussions were underway with the government “regarding the support we still require for this fiscal year, but it remains crucial that an agreement is also achieved on longer-term capital support.”
The DfT declined to comment in response to a request.
