How much debt is Transport for London in?
How much debt is Transport for London in? Debt ratings matter as they affect how much it costs for TfL to service its existing debt, and borrow more money in the future. TfL had just under £13 billion of debt at the end of March 2022, which is mostly raised through selling bonds, a type of debt that can be roughly described as an interest-only loan.
Do TfL own the buses?
The London Underground is operated entirely by TfL, but buses, trams and the London Overground are franchised, so while TfL oversees fares, routes and timetables, competitive contracts are awarded to operators to run services, which includes hiring staff and buying or leasing vehicles.
Why is TfL struggling financially?
TfL lost 95% of its fares income when the pandemic hit, and while passenger numbers on the Tube have recovered to roughly 65% of normal use, the transport body continues to struggle because “many commuters have not returned to a five-day week while there are few international tourists”, said the Standard.
Is TfL in financial trouble?
Total debt (including leases) decreased in the quarter from some small maturities of existing borrowing, which have been refinanced. Our Budget for 2023/24 is to deliver an operating surplus of £79m, demonstrating our achievement of financial sustainability.
Is Transport for London funded by taxes?
The main sources are: Business Rates Retention - funded from a proportion of local business rates and paid to us from the GLA. This is the largest source of grant income to TfL. GLA precept - funded from Council Tax receipts and set annually by the Mayor.
Is Transport for London in debt?
As set out in Transport for London's Quarter 3 (Financial year 2018/19) performance report, available online at https://tfl.gov.uk/corporate/publications-and-reports/quarterly-progress-reports, the current total debt is £11.6 billion, of which £10.3 billion is long term debt.
Why is TfL so successful?
Key to TfL's success is having a vocal and charismatic mayor to champion the transport agenda and secure political and financial support for it. The Mayor of London chairs the TfL board and currently spends £11bn – two-thirds of his annual budget – on transport via TfL.