Source · Select Committees · Public Accounts Committee
Recommendation 13
13
TfL told us that it is over-reliant on income through the farebox which accounts for...
Conclusion
TfL told us that it is over-reliant on income through the farebox which accounts for 72% of TfL income. TfL compared this to New York City Transit which received 38% of its income from fares.37 It told us that COVID had caused revenues to collapse because ridership had collapsed. At the start of 2021, TfL’s long-term demand planning indicated an 18% drop in demand for rail as of 2031 in the most likely scenario, compared with what was expected before the COVID pandemic.38 TfL told us that the government lending it had received during the pandemic included a target to become financially self-sufficient within two years.39 TfL told us it must diversify its income and identify new revenue streams of around £500 million a year.40 Opening the Elizabeth line
Government Response
Not Addressed
HM Government
Not Addressed
2.2 Elizabeth line passenger forecasts have been updated and considered against the COVID-19 pandemic recovery scenarios which were generated for Transport for London (TfL) as a whole and outlined in TfL’s Financial Sustainability Plan of January 2021. Some of the impacts on Elizabeth line ridership have been compounded by ongoing uncertainties created by the COVID-19 pandemic, including travel to Heathrow airport and international travel not returning as quickly as previously expected, as well as passengers travelling to the central London and Canary Wharf not returning as quickly as previously expected due to the prevalence of working from home. The passenger forecasts and revenue scenarios do not take into account any impacts of the recent Omicron variant of COVID-19 virus.