Investing in Transport for London is a pro-growth move
3 min read
For years, the Tories failed Transport for London. By creating a long-term funding deal for the city's famous transport system, this Labour government would not only grow the capital, but also the country.
London’s transport network is renowned for its iconic red double-decker buses, distinctive moquette fabric designs, and well-known reminders to "mind the gap." But what’s often overlooked is the vital role it plays in powering the national economy.
From the zero-emission buses navigating our bustling streets to the new Elizabeth Line, which has dramatically reduced journey times, London’s transport system enables millions of people — Londoners and tourists alike — to move around the city swiftly and efficiently. The result? More time for productive work, visits to cultural hotspots and enjoying the city’s diverse hospitality scene — all of which contribute to economic growth.
But the benefits don’t stop there. The factories that produce the buses, trains and trams supporting this network also create thousands of jobs across the country. The economic ripple effect of a modern, efficient transport system reaches far beyond London’s borders. However, while London’s transport network remains the envy of many cities, it is also one of the oldest in the world. To continue driving growth, it needs long-term investment.
Successive Tory governments have held TfL back with short-term funding deals that barely scratched the surface of what was needed, and meant that TfL couldn’t plan for the future properly. The Mayor of London, Sadiq Khan, has done everything he can to put TfL on a secure footing – but the impact of the pandemic and the subsequent drop in fare revenue have made this an uphill battle. Today, TfL remains the only transport authority in the country without the certainty of long-term funding.
In June, the Labour government has the opportunity to change things, as it sets out its spending plans for the next three years. A long-term funding deal would allow TfL to upgrade Piccadilly, Bakerloo and DLR trains, some of which are nearing the end of their operational life. It would also allow for much-needed signalling improvements, boosting connectivity and supporting the thousands of jobs in TfL’s extensive supply chain.
For my constituents in Croydon East, it would also mean TfL would be able to replace the trams, which are some of the oldest in Europe, with newer, more reliable models. Work has already started on this, but TfL can only deliver these projects and enter the necessary contracts if it has the certainty of a long-term capital funding settlement.
The government has already taken a step in the right direction, with the Chancellor allocating TfL £485m at the Autumn Budget. However, now ministers must go further and commit to a long-term funding deal for TfL.
The benefits of such a commitment would be felt across the entire UK, not just in London. TfL’s supply chain supports over 100,000 high-quality jobs annually across 477 parliamentary constituencies, with two-thirds of suppliers located outside London. Over two years, this supply chain contributed more than £11bn to the UK economy.
At a time when the government’s number one priority is to deliver growth, investing in TfL is a clear opportunity. It will ensure reliable services, increase capacity across the network and secure vital jobs throughout the UK. The next step is clear: a long-term funding deal for TfL is not just an investment in London’s future, but in the UK’s economic prosperity.
Natasha Irons is the Labour MP for Croydon East.
