LONDON (Pakistan Point News / Sputnik - 24th July, 2020) Transport for London (TfL), which operates the entire London public transport system, requires additional financial support of up to 300 million Pounds ($383.5 million) as the COVID-19 crisis has put a sizable dent in income.
The shortfall was described in a revision of the organization's original budget for the 2020-2021 fiscal year published on Friday by TfL. The conglomerate estimates the company will need nearly three billion pounds in funding by the end of the year, 300 million pounds more than originally planned when considering the impact of COVID-19. With prospective government support, the transport system will be able to function smoothly and support ongoing projects until the end of October.
"In order to stabilise TfL's financial position, it is anticipated that a further �2.9bn will be required during 2021/22 which will enable the transport network to operate effectively and support the UK's wider recovery," the report read.
TfL is ordinarily self-sufficient as it bases its budget on ticket fares but the COVID-19 pandemic and government measures to curb it have shrunk TfL's inflow by 90 percent. Traffic remains low since public transport is seen as a major avenue for coronavirus transmissions, the company said.
TfL is one of the many privately-owned companies in the UK charged with carrying out public services which are otherwise the government's domain, in line with the neoliberal model propagated by high-powered Prime Minister Margaret Thatcher throughout her tenure in the 1980s.
