Transport for London made £166 million surplus last year
Transport for London ended the last financial year with a £166 million operating surplus despite passenger revenue falling £255 million short of expectations.
Rises in other areas helped achieve the surplus with TfL stating all revenue will be reinvested into improvement work.
Despite passenger growth being lower than predicated across other forms of transport the Elizabeth line continues to prove extremely popular with journeys five per cent higher than budget.
Who would have thought excellent new rail lines could encourage growth? Well, going by the spending review yesterday the Treasury doesn’t, given they failed to support a Bakerloo line extension to Lewisham enabling thousands of new homes and jobs in inner London.
Then again it took decades for Crossrail to be approved despite central government only funding a third of the cost.
DLR woes
Buses on the other hand have struggled while delays to new rolling stock on the DLR continue to cost.
A report for the TfL Board before a meeting held yesterday states renewals are £25m lower than Budget.
Figures exclude TfL’s property arm named Places for London created to develop public land around stations and reinvest revenue into the transport network. A practice common abroad.
It’s not been an entire success as sites such as above and around Woolwich Arsenal DLR site sit empty for 16 years and counting.
In the past TfL did seek to obtain greater funding to bring some sites forward. Invest now, reap the rewards later. The prior government didn’t agree. There’s not much sign the new one does either.
After passenger journey growth last year fell someway short of expectations, TfL have gone for a modest 1.3 per cent this coming year.
Hopefully we begin the see new DLR stock in coming months begin to enter public service. That should help revenue. In the short term service levels will be cut to eek out more life on the 30 year old trains while weekend closures remain extensive.
