Shelagh Fogarty 1pm - 4pm
Sadiq Khan reveals TfL will run out of cash today without government support
14 May 2020, 10:39 | Updated: 14 May 2020, 11:07
The Mayor of London has told LBC that Transport for London will run out of cash today unless they get a government grant by the end of the day.
Sadiq Khan said they would have no choice but to cut services unless the Department of Transport bail them out.
He warned that government support is the only way that they can continue to provide reliable public transport without the usual passenger numbers and advertising revenue.
He said the government had until the end of the day or services will have to be reduced.
He told LBC: "We're the only transport system in Western Europe that gets no government grant. We're paid for ostensibly by the fares we bring in, the congestion charge and by advertising.
"Over the last two months, we've lost more than 90% of our fares, advertising is down and so is the congestion charge. We've been spending £600million a month to offer services and get nothing back.
"At the start of this crisis, we had a cash reserve of more than £2.1billion. That's running out.
"We're required by law to keep two months' worth of money in reserve to pay for services.
"We've been involved in weeks and weeks of negotiations with the government and it is really hard to get support from them.
"Being blunt, today is the last day.
"Unless the government today gives us confirmation of the grant that we need, the consequences could be quite severe and the implications for all of us will be huge.
"I'm hoping the government today agrees a grant for TfL to help us to do our bit to help. But if they don't, I'm very concerned about the consequences.
"We'll have to start reducing services. The only way to balance the books is to cut services."
Hear the Mayor of London's interview with James O'Brien at the top of the page.