Transport minister Stephen Hammond said today that Transport for London (TfL) should look at new sources of investment to fund future upgrade work.
Hammond told the Place West conference that TfL would be able to access local business rates from next year and that this new revenue stream was a new source of funding that will help reduce the need for it to seek funding from central government.
“Government funding for TfL stands at £3bn per year,” said Hammond.
He said the Department for Transport was looking at other ways of “unlocking” capital for TfL and was considering allowing it to access sovereign wealth funds or pension funds.
Hammond said an example of this is the proposed £1bn Northern Line extension to serve Nine Elms and Battersea. This will be funded through private money and local business rates.
TfL is due to submit its planning application for the extension by early spring next year under the Transport & Works Act.