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Government should meet extra Tube upgrade costs not Londoners, warns Assembly

The Greater London Authority has warned thatthe £400M additional cost of upgrading the Tube upgrades should not be burdened on Londoners.

The interim ruling by the PPP Arbiter stated that the legitimate cost of the next phase of Tube upgrades is £4.4bn - £400M higher than London Underground’s estimate.

“The Arbiter has set out what he believes is the legitimate cost of the next phase of the upgrade works - but his ruling does not resolve how the additional costs will be met,” said London Assembly Transport Committee chair Caroline Pidgeon AM.

“As our report on the Underground PPP noted, the government provided additional money to cover the inefficiency and ultimate failure of Metronet, recognising that an efficient Underground is crucial to London’s ability to continue to drive the national economy.

“The question is whether the government will now step in to help Transport for London with additional funding, rather than leaving London to shoulder the burden. We offer our full support to the [London] mayor in his efforts to persuade the government to meet the funding gap.

“There are a lot of complex arguments around how additional costs should be financed, but the key thing from a passenger perspective is that the work gets done efficiently and with as little disruption as possible.

“Londoners simply want the improved service on the Tube they’ve been promised, and they cannot be expected to meet this new increase in the costs of the works.”


Readers' comments (2)

  • Why shouldn't Londoners be expected to fund this venture?

    Fortunately I live in a very small village in Oxfordshire without street lighting and if we want it we have to pay for it.

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  • Gordon Brown, as Chancellor, imposed the Tube PPP on London, against the advice of many who had a better understanding of the potential risks than the Treasury.

    Livingstone, the elected Mayor, and Transport Commissioner Kiley did their best to prevent it, but Brown chose not to heed their and many others' warnings.

    The Prime Minister should now acknowledge he was wrong, and meet the costs from Treasury funds. But, we now know that Brown finds it difffuclt to admit that he might have been wrong.

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