Transport for London (TfL) has published its proposed budget and business plan for the coming year outlining a massive expenditure programme.
However, as it details the funding for schemes such as Crossrail and the extension of the Northern and Metropolitan Tube lines, it has also outlined a vision to streamline its engineering costs.
In the document to go before the TfL Board on Thursday, it says in terms of its capital expenditure on new projects: “We have begun to identify value engineering options on new capital investment projects and we are targeting programme cost reductions of 10% against the estimated final cost through better cost management. Further initiatives will reduce the annual cost of our capital renewals while not degrading our assets.”
In the plan £1.2bn a year is earmarked to be spent on new capital investments.
To mitigate a reduction in Government funding, TfL is looking at ways of increasing income and decreasing expenditure. It aims to reach break-even on direct operating costs by 2018/19 and to reduce operating costs by nearly 9% over the next five years.
London’s transport commissioner Mike Brown said: “We are continuing the work of transforming London’s road, rail and Tube networks for the millions of people who use them every day while making every pound go further through a continuous savings and efficiencies programme.”
The expenditure planned for in the budget includes the continuing construction of Crossrail, the Northern and Metropolitan lines extension, the Metropolitan, District, Circle and Hammersmith & City lines modernisation with a new signalling system, electrification of the Gospel Oak to Barking London Overground and doubling the station accessibility fund from £75M to £150M.