Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Johnson says London transport has been 'bankrupted' by its mayor

Published 21/10/2020, 08:15
Updated 21/10/2020, 21:50
© Reuters. FILE PHOTO: Britain's Housing Secretary Jenrick appears on BBC TV's The Andrew Marr Show in London

By Kate Holton and William James

LONDON (Reuters) - British Prime Minister Boris Johnson said the mayor of London Sadiq Khan had bankrupted the capital's transport system, as the government looked to force Khan to sell off land and cut running costs as part of a fractious financial COVID-19 bailout.

Khan, from the opposition Labour Party, has called for a 5.7 billion pound ($7.4 billion) package for Transport for London (TfL) after commuters deserted public trains and buses during the pandemic.

Khan says in return the government is insisting on higher fares and a raft of other revenue raising mechanisms such as increasing the size of the congestion zone which requires drivers to pay a fee to drive in the city.

"The current mayor of London had effectively bankrupted TfL before coronavirus had even hit," Johnson, who himself served as mayor of London from 2008 to 2016, told parliament.

"Any expansion of the congestion charge, or any other measure taken to improve the finances of TfL are entirely the responsibility of the bankrupt current mayor of London," he said, adding that TfL had been left in "robust health" in 2016.

A spokesman for the mayor did not immediately respond to a request for comment. Coronavirus lockdowns have led to a dramatic fall in the number of journeys across London.

London's population overtook its 1939 record of 8.6 million in 2015 and, under pre-pandemic forecasts, was forecast to top 10 million by around 2030.

Johnson's government is locked in negotiations with several city mayors over how businesses should be compensated when they are forced to close during lockdowns and how public services can continue.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Khan, who had frozen the cost of single fares, said in an earlier statement that the government's proposals would deter Londoners from travelling, further damaging any recovery.

Housing Secretary Robert Jenrick said it had "to resolve the fact that the mayor has bankrupted TfL and the Greater London Authority."

"We've already given multiple billions of pounds to him over the last few years to bail him out," he said. "How do we take this forwards. Well, I'm afraid it can't keep falling back to the taxpayers of the whole of the United Kingdom."

(Adds dropped headline word)

Latest comments

It may be a far fetched idea but couldn't TfL have just run a reduced service.
Boris being a twerp as usual.
What did you expect stay at home and work from home means? He has no control over your own laws
Johnson again putting blames.... is it because he is a strong remainer?
COVID crushed TfL, anyone can see that. I'm not what kind of person would beleive PM Bobo.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.