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Transport for London pledges to up efficiency savings by £2.6bn

London mayor Boris Johnson has pledged the greatest investment in the capital’s transport network in 80 years after identifying “staggering” savings and efficiencies of £7.6bn.

Johnson said that over the next four years three Tube lines will be fully upgraded, new trains will be delivered to five lines, major progress will be made on the Crossrail project, the London Overground rail network will be completed, and the capital’s bike hire scheme will be extended.

The Rail Maritime and Transport union said it “defies belief” that the “cuts target” is being increased from £5bn to £7.6bn.

Transport for London’s revised business plan will be considered by its board tomorrow, setting out plans to deal with an extra 112 million Tube passengers over the next four years.

Johnson said: “Through negotiations, savings and efficiencies, we have done what many believed to be impossible.

“We have secured the greatest investment in London’s transport network in 80 years, which will deliver Crossrail, the Tube upgrades, the completion of the London Overground network and the continuation of the cycling revolution, while protecting frontline passenger and customer services.

“The staggering £7.6bn in savings and efficiencies TfL is making means that every penny will be spent on delivering and upgrading services for the capital, providing even better value for money to fare and taxpayers.”

London’s transport commissioner Peter Hendy said: “The next four years will be among the busiest and most exciting in the history of London’s transport network.

“We will meet all of those challenges while also ensuring we are as efficient and effective as we can be through our £7.6bn savings programme.”

RMT general secretary Bob Crow said: “With the Tube lurching from crisis to crisis, it defies belief that Boris Johnson and his officials are jacking up their cuts target from £5bn to £7.6bn. These new cuts will drag the Underground even deeper into the spiral of decline, with breakdowns, failures and disruption a daily fact of life.”

The £7.6bn savings and efficiencies programme, to be delivered over the course of the business plan period and through to 2017/18, includes:

  • A full review of TfL’s structure, led by Transport Commissioner Peter Hendy, to ensure the organisation is as efficient as possible with corporate and back office costs further reduced to protect frontline services
  • £400M in savings from ticket office changes driven by a reduction in 800 management and operations roles
  • £375M from efficiencies in IT systems
  • £460M in savings in bus subsidy costs while maintaining the current extensive and effective bus service levels
  • £290M from renegotiating major contracts (including congestion charging and highway maintenance)
  • £175M from relocating staff into cheaper locations

Projects to deliver

Over the course of this business plan period, which runs until 2014/15, Transport for London delivery will include: 

  • The Jubilee line upgrade delivering a 33% increase in capacity across the line with more trains and faster journeys
  • The Victoria line upgrade which will deliver a 21% increase in capacity with new trains and a 19% improvement in journey times
  • The Northern line upgrade which will see a 20% increase in capacity across the line and an 18% reduction in journey times
  • New trains on the Hammersmith & City, Metropolitan, District and Circle lines
  • Major progress on Crossrail, with tunnelling completed and station construction both above and below ground
  • Delivery of transport for the London 2012 Olympic and Paralympic Games
  • A total of 4,000 traffic signals reviewed to reduce delays on London’s roads
  • The introduction of a lane rental scheme to cut unnecessary delays caused by roadworks, subject to support from the Government
  • The cable car crossing between North Greenwich and The Royal Docks
  • The eastward extension of Barclays Cycle Hire
  • The completion of all 12 Barclays Cycle Superhighways
  • The New Bus for London
  • The completion of the London Overground rail network, London’s first orbital railway
  • The Source London electric vehicle charging network

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