Khan warns housing projects may be scrapped if TFL funding solution not found

Sadiq Khan has said several major housing projects may be axed if a funding agreement with central government for public transport is not reached by Saturday.

The mayor of London has warned of major spending cuts if a replacement funding arrangement for Transport for London (TfL) is not agreed before the current short-term deal expires in five days.

Khan says he may have to plan for ‘managed decline’ which could mean thousands of planned new homes that rely on new TfL transport infrastructure could no longer be delivered.

These include more than 25,000 new homes that rely on the new Bakerloo tube line extension which Khan said “would become undeliverable” without fresh funding.

He also said 6,000 homes planned as part of the redevelopment of Colindale Station and 30,000 new homes in Beckton Riverside and Greenwich which rely on the extension of the Docklands Light Railway “may not happen”.

Khan also said the TfL growth fund - which is designed to finance transport infrastructure schemes to help boost regeneration and development - could also be compromised. TfL said to date the fund has “helped unlock 55,000 homes”.

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Khan said: “Failing to adequately fund TfL is a dereliction of the Government’s duty to our capital city, the people of London and the country as a whole.

“We are in the middle of a housing crisis that cannot be solved if parts of the capital remain cut off from transport links or if vital schemes that improve access to town centres are not able to be delivered.”

However, the Department for Transport is reportedly not willing to open discussions on future support until Khan identifies alternative sources of funding.

A DfT spokesperson told the Independent: “Under the current settlement, the mayor agreed to identify new or increased income sources by 19 November that he proposes to consult upon which would move TfL towards a financially sustainable future, in a way that is fair to the national taxpayer.”

“These have not been identified. We are therefore extending that deadline to 8 December and, once received, government stands ready to begin discussions on further support for TfL to recover from the pandemic”.