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RNS Number : 6443X

Transport For London

30 August 2022

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 (as it forms part of Retained EU Law as defined in the European Union (Withdrawal) Act 2018).

Transport for London ("TfL")

30 August 2022

Long Term Funding Settlement

TfL announces that a Long-Term Funding Settlement (the " Long-Term Funding Settlement " ) has now been agreed between TfL and the Department for Transport ("DfT") to support transport services in London until 31 March 2024. This funding settlement follows on from and replaces the extraordinary funding settlement between TfL and the DfT dated 25 February 2022, known as the Fourth Funding Package, which recently came to an end.

The Long-Term Funding Settlement contains support agreements for passenger revenue risk as well as capital and operating support.

In relation to revenue risk, the Long-Term Funding Settlement recognises that since the relaxation of Covid-19 restrictions, the current circumstances continue to present ongoing financial challenges and uncertainty to TfL in predicting the future passenger revenue for the organisation, therefore the Government will retain passenger revenue risk and make grant payments if passenger revenue is lower than the pre-determined forecast.

For capital and operational support, the Government will fund the difference between TfL's costs and revenue up to an agreed annual envelope. The overall funding amount will be GBP598m for the period 30 August 2022 to 31 March 2023 and GBP565m for 2023/24.

TfL is continuing to target financial sustainability from April 2023 and is therefore working towards being financially sustainable ahead of the end of the Long-Term Funding Settlement on 31 March 2024.

A copy of the Long-Term Funding Settlement dated 30 August 2022 will shortly be available from the following page of our website:

https://tfl.gov.uk/info-for/investors/funding-letters

For further information, please contact:

Transport for London

5 Endeavour Square

London

E20 1JN

Email: GroupTreasury@tfl.gov.uk

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