– Piccadilly Line upgrades pushed back four years
– Long term borrowing up 46%
– 27% increase in long-term liabilities
– Overly optimistic predictions on efficiency savings
Commuters are in for a rough four years after the Mayor of London’s TfL business model revealed plans for reckless borrowing and delayed investment.
Commenting, Conservative London Assembly member Keith Prince said:
“Since May we’ve seen the Mayor making wild spending promises with little real hint of how he's going to balance the books.
“Now we know why – he's going to leave the books resolutely unbalanced. This is the business plan of a one-term Mayor who is desperate to keep the show on the road for 4 years with no real thought for how to cope after May 2020.
“Instead of the prudent financial management TfL needs, we see a 46% increase in long-term borrowing, a 27% increase in long-term liabilities and useable reserves slashed by £1.689billion. Add in incredibly optimistic predictions on efficiency savings and unlikely projections on housing receipts and it is clear the Mayor does not have a long-term strategy for London.
“The immediate impact is a push back of desperately-needed work on the Piccadilly Line and a withdrawal of £100million for the Sutton Tram Extension but longer term, commuters will be in for a rough ride.
“The Mayor gained office on the back of foolish promises on freezing fares and a pretence that difficult questions all had easy answers. It is ordinary commuters who will suffer as reality proves him wrong."
• Long-term borrowing to increase from £8.281bn to £12.090bn
• Long-term liabilities to increase from £12.275bn to £15.640bn
• Useable reserves reduced by £1.689bn
• Piccadilly Line extension work pushed back from 16/17 to at least 2020, with no new trains before 2023
• £100million Boris committed to Sutton Tram Link withdrawn