Transport for London Business Plan - December 2016 - Redbridge Council
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CED 113 Transport for London Business Plan December 2016
CED 113
Contents CED 112
About Transport for London (TfL)
4 Mayor’s introduction 43 Underground
Part of the Greater London Authority We work hard to make journeys easier
family of organisations led by Mayor through effective use of technology and
8 Commissioner’s foreword 50 Buses
of London Sadiq Khan, we are the data. We provide modern ways to pay
integrated transport authority through Oyster and contactless payment
responsible for delivering the Mayor’s cards and provide information in a wide 11 What this plan will deliver 57 Rail
strategy and commitments on transport. range of formats to help people move
around London.
As a core element in the Mayor’s overall 24 Business at a glance 62 Roads
plan for London, our purpose is to keep Real-time travel information is provided
London moving, working and growing, directly by us and through third-party
and to make life in our city better. We organisations, which use the data we 26 Financial summary 69 Other operations
reinvest all of our income to run and make openly and freely available to
improve London’s transport services power apps and other services.
and to make it safer, more modern 34 Financial trends 74 Appendices
and affordable for everyone. We listen to, and act upon, feedback and 74 1. TfL Group balance sheet
complaints to constantly improve our 76 2. Major new capital investment
Our operational responsibilities include services and work with communities, 38 Borrowing and cash
London Underground, London Buses, representative groups, businesses and
Docklands Light Railway (DLR), London many other stakeholders to shape
40 Operational trends
Overground, TfL Rail, London Trams, transport provision in London.
London River Services, London Dial-a-
Ride, Victoria Coach Station, Santander Improving and expanding transport in
Cycles and the Emirates Air Line. London is central to driving economic
growth, jobs and housing throughout
On the roads, we regulate taxis and the the United Kingdom. Under the Mayor’s
private hire trade, run the Congestion housing strategy, we are using our
Charging scheme, manage the city’s land to provide thousands of new,
580km red route network, operate all affordable homes. Our own supply chain
of the Capital’s 6,300 traffic signals and creates tens of thousands of jobs and
work to ensure a safe environment for apprenticeships across the country.
all road users.
We are delivering one of the world’s
largest programmes of transport capital
investment, which is building the
Elizabeth line, modernising Tube services
and stations, transforming the road
network and making it safer, especially
for more vulnerable road users, such
as pedestrians and cyclists.
Transport for London Business Plan 3
Mayor’s introduction
My first TfL Business Plan is an
important document.
It comes at a difficult moment. I share
the grief and shock of the families
of those who lost their lives, and the I am asking TfL to use every ounce of its expertise,
many people injured and affected by creativity and energy to achieve our ambitious
the tragic tram derailment in Croydon.
As the Commissioner points out in
Business Plan. But I am confident we can deliver
his foreword, safety is TfL’s absolute my vision for an affordable, accessible and
priority. We will take every action modern transport network
necessary to prevent this from ever
happening again, and we will continue
to offer every support to the local
community for the long term.
So we’re forging ahead with our plans We need TfL to be good at delivering
This plan sets out how we will make to tackle air pollution, provide new projects on time and to budget, at
commuting safer and more affordable genuinely affordable homes on TfL land finding new sources of finance, at
for all Londoners at the same time as and make the case for big infrastructure generating new revenue streams and
delivering a truly ambitious programme projects, such as Crossrail 2. It’s through at helping Londoners make the shift to
of modernisation and transformation. initiatives like this that we can truly greener, safer, more sustainable forms
unlock the power of transport. of transport such as walking and cycling.
Transport is a cornerstone of my vision These are already TfL’s strengths, but
for a fairer, more prosperous city. I am very disappointed that the we want to play to them with greater
Because transport doesn’t just help Government is going back on its promise ambition and urgency.
people to get around, it can help people to devolve suburban rail franchises
to get on. It can create opportunities I’m determined to do this and it’s already to TfL’s control. Already, TfL has Make no mistake, I am asking TfL
for Londoners. It links our homes to our been a busy first seven months. We’ve proven what can be delivered from rail to use every ounce of its expertise,
jobs. It gets children to their schools. already launched the new Hopper fare, devolution – more frequent trains, creativity and energy to achieve our
It connects friends and family. It joins which is helping millions of people. fewer cancellations and delays, more ambitious Business Plan. But I am
London’s businesses to customers. And We’ve already begun the Night Tube, staff on stations and more affordable confident we can deliver my vision for
it provides access to London’s culture. which is helping to boost our night-time fares. There is a very strong business an affordable, accessible and modern
economy. And we’ve already announced case for devolving some suburban rail transport network. And that, through
But if we are to ensure our transport a TfL fares freeze for four years, which is franchises to TfL and I will continue to transport, we can create a healthier,
network can cope with London’s helping to ensure travel is not a barrier work alongside commuters, business more sustainable and safer city that
growing population, provide new to people getting on with their life. leaders and politicians from all parties increases opportunity for all Londoners.
opportunities for Londoners and deliver to campaign for this.
the safe, affordable and reliable service But this is just the start. We’re now
Londoners deserve, then we need some focusing on how we can deliver To achieve our ambitions, this Business
big changes. We need to keep fares transport solutions that not only Plan sets out how TfL is becoming
down, plan and deliver new transport result in extra capacity and economic a leaner organisation and how we’re
capacity and constantly look for new growth, but bring long-term health, developing a new approach for how
ways to innovate. environmental and other benefits too. the organisation and its workforce can Sadiq Khan
work together more efficiently. Mayor of London and
Chair of the TfL Board
4 Mayor’s introduction Transport for London Business Plan 5
Our Business Plan outlines how, over the next
five years, we will manage our resources to
deliver the Mayor’s commitments. It includes:
Affordable transport Making transport more accessible Safer London Housing and regeneration
Keep all TfL fares
frozen
More
than 40% New Vision
New 10,000
of Tube stations
step-free by 2021/22
Zero
target for
safety
standards
homes on TfL land
(50 per cent affordable)
More journeys with the road safety for buses
in London
Hopper fare Improve
measures
Lobby for
powers
Crossrail
development
Protect
bus stop
and taxi rank 100% New
to extend
Bakerloo Silvertown
all concessions
accessibility step-free
Elizabeth line 20mph limits line tunnel
Public transport, walking and cycling Cleaning up air quality Harnessing tech to improve journeys Raising commercial revenue
More ULEZ Revised Top-ups available
£850m
anywhere
start for
ULEZ
people on Ultra Low revenue from better
the buses Emission Zone use of TfL land
on the network
Open
(better journeys
and reliability)
Elizabeth line Purchase only
green
Ticketing
app
More buses
from
500 Develop
cycling and walking
(including Rotherhithe crossing) T-Charge 2018
apps using TfL data a trading arm
Creating attractive and iconic places Helping business Community/borough partnerships Diversity and inclusion
Transform
Oxford Street for pedestrians
More
integrated deliveries
Borough spend
maintained
A more
representative
workforce and senior management
Improve London’s roads
Re-timing
deliveries
Commissioner’s foreword
The safety of our customers, passengers and
users must remain our top priority. This is
fully reflected in this plan.
• Less reliance on agency staff can bring the high levels of reliability
and customer service seen on London
The terrible tram derailment at • Negotiating better deals with Overground to other inner suburban rail
Sandilands in Croydon, where seven our suppliers services in the Capital. We have set aside
people tragically lost their lives and £20m of funding to enable us to start
more than 50 people were injured, is at • Sensible and considered value engineering work immediately should the position
the very centre of our hearts and minds in delivering our major projects change in light of our arguments.
as we deliver this plan. It fully addresses
safety as our absolute priority and all And we are already seeing the results. Recent events outside our control have
necessary resources and money are in Historically, our operating costs have the potential to significantly affect our
place to ensure a safe network for our risen year-on-year. Over the past six finances and operations in the long run,
customers and all road users. months, however, we have reversed this including the Government’s decision to
trend; our operating costs have stabilised build a third runway at Heathrow and the
The Capital is growing rapidly. Its and are now falling. In the long term, we decision for the UK to leave the EU. It is
population already exceeds 8.6 million plan to hold costs broadly stable at this too early to set out with any certainty
and will rise to 10 million by 2030. That level, while delivering the modernisation what the impact of these decisions will be
is equivalent to two full Tube trains of and new transport capacity London but, as things become clearer, they will be
new Londoners every week. needs. This will include opening the reflected in future iterations of this plan.
Elizabeth line and delivering vital
This is the first TfL Business Plan of upgrades on the London Underground. The Mayor is committed to delivering
Sadiq Khan’s first term as Mayor of a city for all Londoners and that
London. Our job is to deliver his We are also taking a fundamentally commitment extends to TfL as an
commitments and the transport services different approach to raising other income. employer, to ensure transport plays a
that keep London moving, working and We have ambitious plans for the use of central role. For too long, and especially
growing and make life in the city better. We are driving efficiency through the our land and retail estate and delivering at senior levels, women and colleagues
biggest ever overhaul of our organisation new homes, and our target is for 50 per from black, Asian and minority ethnic
We know that transport is not an end and we have a new way of presenting cent of them to be affordable, in support communities have been under-
in itself. It is a means of enabling a our finances, making a clear distinction of the Mayor’s housing strategy. represented. This must change so that
healthier, more inclusive city with new between operations and the capital we reflect the diverse city we serve.
jobs and homes to stimulate and sustain investment programme. With our media partners, we will fully
economic growth to the benefit of all exploit our huge advertising estate by In short, we will overhaul our organisation
Londoners and the entire country. Operating and capital cost reductions investing in a new generation of digital so that it is more efficient and more
are being achieved through a wholesale assets. We are also harnessing our inclusive than ever before, while creating a
As a core element of this, I am fully review of every element of our expertise by offering consultancy services healthier, more sustainable and safer city.
committed to making our transport operations. This includes: to other transport operators across the
network affordable while delivering world, in areas like ticketing technology
safe, high-quality and reliable services • Merging functions to create efficiencies and capital programme delivery.
alongside one of the biggest capital
investment programmes in the world. • Reducing management layers Naturally, we were very disappointed
And I am determined to take all the with the Government’s response to our
action we can to help tackle London’s • Cost reductions across areas that business case for further devolution Mike Brown MVO
poor air quality. support our operational business of rail services to TfL. We will, of Commissioner
course, continue to set out how we Transport for London
8 Commissioner’s foreword Transport for London Business Plan 9
An affordable transport
system lies at the heart What this plan will deliver
of the Mayor’s plans –
price should not be a A total of £2.1bn will be invested to create
barrier to travel Healthy Streets, focusing on walking, cycling
and improving road safety, public spaces and
air quality.
Affordable transport Public transport, walking and cycling
An affordable transport system lies at This Business Plan is focused on
the heart of the Mayor’s plans – price Londoners themselves. By making
should not be a barrier to travel. our network more affordable and
accessible, we will encourage people
Our fares are frozen for the Mayor’s to shift towards active and healthier
term so Londoners will pay the same travel. We will reduce traffic and make
for TfL Tube and bus journeys in 2020 walking, cycling and public transport
as they do now. A new Hopper fare was safer and more attractive. We will
launched on 12 September 2016, giving further enhance the system with
customers two rides for the price of good connections between services,
one if they are changing buses or trams ultimately creating Healthy Streets and
within an hour. Unlimited rides within a city that is more pleasant to live in
the hour will be introduced from 2018. and move around. This will particularly
Fares tied to National Rail will increase benefit Londoners in communities that
unless rail services are devolved to the experience poorer health.
Mayor, or the Government follows his
lead to freeze prices. We will encourage a shift to public
transport by:
A new publicity campaign, backed by
online tools and customer support, • Increasing capacity on our Underground
has been launched to help people find and rail services by more than 20 per
the cheapest option and encourage cent, through projects such as the
switching to pay as you go fares. new Elizabeth line, and expanding the
Overground, DLR and tram networks
All concessions for older and disabled
people, children, those in receipt of • Focusing on the bus network – the
Jobseekers Allowance, and other backbone of public transport in
socially disadvantaged groups will be London – to improve journey times
protected during the Mayor’s term. and maintain reliability. We will do
this by, for instance, investing in bus
These changes will be paid for by a lanes and other priority measures. We
tough cost reduction programme will adapt services to meet changing
and exploitation of new commercial demand across London, without
opportunities. reducing the network overall
More London development at Tower Bridge
10 What this plan will deliver Transport for London Business Plan 11
Our Business Plan supports the Mayor’s On our road network the number of Creating attractive and iconic places
commitment to make London a byword people killed or seriously injured (KSI) We will work with Westminster City This Business Plan
for cycling by increasing investment in is now the lowest since records began. Council to turn Oxford Street, one of the
this area to an average £154m per annum However, much more can and should world’s most polluted streets, into one
includes a bigger
for the next five years. This is almost be done. of the world’s finest public spaces. Local increase in step-free
double the £79m a year spent over the bus services will be altered to reflect access than ever before
last Mayoral term. In 2017, we will increase our ambition both this change and the opening of
by adopting a ‘Vision Zero’ approach the Elizabeth line. Major improvements – £2.50 for every £1 spent
We are boosting cycling and walking in to road safety. This means maximising will also take place in inner and outer on step-free access in
the Capital by working with London’s safety in all our road schemes, from London, for instance in Stratford town
boroughs to create a network of Cycle infrastructure improvements to centre, where we will make it better the last Business Plan
Superhighways, Quietways, new safer behaviour change and enforcement for pedestrians and cyclists, while
junctions and Liveable Neighbourhoods. programmes. Our long-term vision is enhancing the public space.
Not only will this benefit Londoners’ to see London’s roads free from death
health, it will reduce overcrowding on and serious injury. We will invest substantial sums through Increasing accessibility
the roads and public transport, improve the Healthy Streets programme to help This Business Plan includes a bigger
air quality and make our roads safer. Vision Zero means reducing the transform areas of London, making the increase in step-free access than ever
dominance of vehicles on our streets city a more attractive and accessible before – £2.50 for every £1 spent on step-
Safer London to minimise the risks they pose to place in which to live, work and travel. free access in the last Business Plan.
Whether it is running and maintaining vulnerable road users. It is an important Our investment will ensure the Capital
our trains, tunnels, roads and rail, part of the Healthy Streets approach, continues to thrive as the world’s most Acting on the Mayor’s vision, we are taking
investing in new capacity to relieve because less traffic means streets are desirable destination for visitors and a more ambitious approach to making
overcrowding, or using the latest safer and more attractive for walking, a top global city for business, finance sure London is truly open to everyone. By
technology to combat congestion, cycling and using public transport. and culture. the end of 2021/22, more than 40 per cent
safety is always our first priority. Our of Underground stations will have step-
goal is to create an environment where We will implement a new safety These schemes often underpin vital free access to all platforms. This will give
people are safe and feel safe, however standard for buses, enhance conditions developer investment. For example, a greater choice of travel options and will
they choose to travel. To do this, we for vulnerable road users by tackling the at Old Street, we are transforming the directly benefit older and disabled people,
will continue to work with the Capital’s city’s highest risk junctions, and oversee existing busy roundabout to provide as well as parents and carers with children
police authorities, including the British the introduction of more 20mph limits. safer crossings, segregated cycle lanes and pushchairs.
Transport Police (BTP), to make sure and a new public space. Another
customers feel confident about using Customer security is central to example is Tottenham, which will benefit Over the next five years, some of our
our services at all times. everything and we will continue our work from a new station at White Hart Lane busiest stations will become step-free.
to ensure London’s public transport with improvements to the surrounding These include Bond Street, Finsbury Park,
We will implement all recommendations system is a safe, low-crime environment. area, complementing the rebuilt White Tottenham Court Road and Victoria. We
emerging from the Rail Accident Hart Lane stadium. will also focus on improving accessibility
Investigation Branch’s report into the at stations elsewhere across London,
tragedy on the tram network in Croydon,
and do everything we can to offer
support to the families of those who
lost their lives or were injured.
12 What this plan will deliver Transport for London Business Plan 13
including Colindale, Harrow-on-the-Hill, And we will invest in new transport
Newbury Park and Knightsbridge. When connections to help customers make
the Elizabeth line opens fully in 2019, like easier journeys. The Elizabeth line and
the DLR and London Trams, its stations the modernisation of the Tube will make
will all be step-free. a huge difference to capacity. We are also
planning projects that will transform
Working with London’s boroughs, the network and support our economy
we will complete our programme to and competitiveness in the longer term,
improve bus stop accessibility and including Crossrail 2, the Silvertown tunnel
begin a programme to enhance access and an extension to the Bakerloo line.
at taxi ranks.
Cleaning up air quality
Helping business In London, the equivalent of up to 9,500
London is one of the world’s top cities premature deaths a year are attributed
for business, and a high-quality transport to exposure to air pollution. We are
network is vital to making sure it remains committed to working with the Mayor
globally competitive. to take ambitious and decisive action
to bring this under control, and quickly.
We will help business to move goods Spending on environmental activities has
and services around the Capital reliably increased dramatically to £875m over the
and affordably, and be able to recruit period of this plan.
from across the city and wider region.
We are launching the world’s first Ultra
Healthy Streets and clean air are important Low Emission Zone (ULEZ) in central
factors that help business decide where London. This will reduce nitrogen oxides
to locate and attract staff. As part of and particulate matter – the two biggest
tackling London’s poor air quality, we will threats to health from poor air – and
work with businesses to encourage higher improve the quality of life for Londoners.
standards for safer and cleaner vehicles After listening to feedback from the
and make it easier for their employees public, we are currently consulting on an
to walk and cycle to work. earlier start date for the ULEZ of 2019.
We are also proposing expanding the
We must cut congestion and improve zone up to the North and South Circulars
road reliability. This will involve working for all vehicles, and London-wide for
with business to help meet freight needs lorries, coaches and buses.
in the safest, cleanest and most efficient
way possible, providing better road We have been asking the public for
information and improved coordination their views on introducing, in 2017, an
of planned roadworks. Emissions Surcharge to the Congestion
Kingsland High Street, Dalston Kingsland
14 What this plan will deliver Transport for London Business Plan 15
Charge (also known as the Toxicity Crossrail 2 – the largest new infrastructure The TfL Growth Fund is focused on helping
10,000
Charge or T-Charge) for higher polluting project under development – is critical boroughs with targeted and relatively
vehicles, as a first step towards the for London. It will enable up to 200,000 small-scale transport infrastructure
ULEZ in 2019. The creation of five Low more homes and could directly support schemes that help to unlock growth and
Emission Neighbourhoods, involving new homes being thousands of jobs (60,000 across the development opportunities. This includes
eight boroughs and a range of local built on 300 acres UK while it is being built and a further a new ticket hall for the Northern line
businesses, as well as the continuation of TfL-owned land 200,000 when services start). The Mayor station at Elephant & Castle and the
of the Mayor’s Air Quality Fund, will cut is committed to delivery by 2033, and we Fiveways project in Croydon (see p67).
pollution across London. will work closely with the Department
for Transport (DfT) and Network Rail to The unallocated part of the fund, totalling
By implementing 12 Low Emission Bus meet this deadline. £200m, will allow more of these schemes
Zones we will reduce even further the to be brought forward, subject to them
impact our bus fleet has on the Capital’s In addition, 80,000 new homes will be meeting criteria including growth impact,
By 2033
air quality. We will also phase out the supported by Tube upgrades on the deliverability and match funding from
purchase of conventional diesel buses existing network. other sources. It could possibly make a
and aim only to procure green vehicles contribution towards an extension of the
(hybrid or zero emission) from 2018. Intensifying development around tram network from Wimbledon to Sutton,
Mayor’s well-connected transport hubs is an should agreement on an acceptable
More housing and regeneration commitment important part of the Capital’s future. We business case and funding package be
to delivering
A core principle of the Mayor’s vision believe rail devolution would underpin reached with the borough.
Crossrail 2
for the Capital is that new investment this as it would enable us to run more
should act as a catalyst for regeneration services to support a truly integrated, The new High Speed 2 and Crossrail
and create opportunities for connected and affordable city. station set to open at Old Oak Common
communities beyond central London. in 2026 will help unlock development
£850m
At present, east London is poorly opportunities and enable the creation
We must increase the supply of new served by river crossings, which restricts of tens of thousands of new homes
housing across the city. Our planned transport options on this side of the and jobs for Londoners. We will work
extensions on the London Overground city. We will tackle this, starting with with the Old Oak and Park Royal
to Barking Riverside, and our work on in revenue generated by using our the Silvertown tunnel, which is due Development Corporation to progress
land for property development
the Bakerloo line are good examples to open in the early 2020s. As part of plans for a complementary package of
of infrastructure investment creating the Mayoral review of east London transport investment in and around
growth and regeneration – they will river crossings, we are committed to North Acton, Willesden Junction and
support the delivery of 10,800 and delivering the fundamental change Old Oak Common itself.
25,000 new homes respectively. in new cross-river bus services that
the Silvertown tunnel enables, and Raising more commercial revenue
We are working to build 10,000 homes offering concessions to local residents By taking a fundamentally different
on 300 acres of our own land, as well as to encourage take-up. We will also approach, we are generating more non-
provide new workspaces and offices. We progress proposals for a new pedestrian fares income from our assets to reinvest
have increased the scale and pace of this and cycle crossing between Rotherhithe in transport. Putting our land to better
development, and our target is for 50 per and Canary Wharf, and prioritise the use for property development will
cent of these homes to be affordable. case for a DLR crossing between generate £850m in revenue over the
Gallions Reach and Thamesmead. Business Plan period. But we must
show greater ambition and go further.
16 What this plan will deliver Transport for London Business Plan 17
Establishing a commercial trading arm future, these networks can help generate Local Implementation Plans at existing
will allow us to sell our expertise to more commercial revenue by providing levels. Plans will be policy-led and
other cities and transport operators in a 4G network for public use.
We are committed to aligned to the new Mayor’s Transport
the UK and across the world, as well as promoting equality. Strategy and will provide solutions to
use our iconic roundel and Tube map to We are global leaders in many We want to create an local challenges.
drive new revenues. We will get more technology areas, including ticketing
from our advertising – we own the most and information provision, with our inclusive London that As well as investing in town centres,
valuable outdoor advertising estate in expertise sought by other transit is open to all, where we will engage with the boroughs to
the world – and plan to do more on operators in the UK and worldwide. see how we can help London evolve to
digital advertising by using data to difference is celebrated cope with the increased demand that
make sure campaigns reach the right The number of people using contactless and respected, and residential and employment growth will
people at the right time. payments continues to rise. Thirty five bring, and how we can encourage the
per cent of pay as you go journeys on the
where everyone can most efficient use of road space to
We will look to make more of our retail Tube are now paid for with contactless thrive, regardless of their move people and goods.
spaces at stations and on high streets, bank cards. A new Oyster app will offer background or diversity
and exploit opportunities in our railway customers a more convenient way to top Together, we are working with
arches. We recognise that our tunnels up, or check their balance and journey developers and Business Improvement
and stations remain ‘not-spots’ for history. Top-ups will be available anywhere Districts to transform areas including
mobile coverage so are investigating on the transport network, including Tottenham Court Road, Stratford,
new solutions to meet our customers’ buses, within minutes of purchase. • We will continue to explore how Baker Street and the Vauxhall gyratory.
needs and also generate income. data, technology and information
In addition: provision can help manage peak Diversity and inclusion
Harnessing technology to make demand for transport We are committed to promoting equality.
journeys better • The Surface Intelligent Transport We want to create an inclusive London
Our open data strategy has created System programme will replace many We work hard to make sure our technology that is open to all, where difference is
a community of more than 10,000 of the critical systems we use to is accessible. Our websites are tested so celebrated and respected, and where
developers, powering more than 500 manage London’s road network. It that they meet important standards, such everyone can thrive, regardless of their
apps that are used by 42 per cent of will equip us with new technology as those of the Web Accessibility Initiative. background or diversity.
Londoners. Across our business, we are fed by real-time data to make our Our online Journey Planner also offers
improving the way we use technology to operational decision-making quicker, a range of travel options for everyone, By providing safe and accessible
reduce costs and realise greater benefits. leading to less disruption and including people with accessibility needs. transport, we enable a vast labour
Our new Technology and Data Strategy congestion on the network market in the Capital and beyond. We
is shaping our approach. Partnerships with boroughs make sure Londoners can enjoy their
• A new partnership with Google on and communities rights to work and have a family life,
Improvements are being made to its Waze technology will see them We are strengthening our relationships and live with dignity and autonomy.
the ways in which we buy or build use our open data, while we use with the boroughs and working more
technology. We are working on a plan their crowd-sourced data on road closely than ever on joint programmes Our services must be safe, affordable and
to consolidate our telecommunication conditions to help us manage traffic and towards shared goals. The boroughs secure. We know people have different
networks, including those that we run around incidents and road closures will be integral to the delivery of our experiences depending on where they
ourselves and those we buy in. In the Healthy Streets programme. We are live, and those in deprived areas are
committed to maintaining funding for disproportionately affected by health
18 What this plan will deliver Transport for London Business Plan 19and air quality issues. We will make sure Our commitment to equality and diversity By assessing people on their potential The Elizabeth line
our schemes and proposals take into must be reflected in our organisation, so rather than their experience, we have During the plan period, Crossrail
account the needs of everyone. our aim is to recruit, retain and develop significantly increased the number of construction will be completed and the
a diverse workforce, and make sure black, Asian and minority ethnic (BAME) new Elizabeth line will become a fully-
We are prioritising action on issues our people have the opportunities to apprentices from 23 per cent in 2015 fledged, operational railway. When the
that disproportionately affect some become the best they can be. to 32 per cent in 2016 – and we expect entire route opens at the end of 2019, our
customers more than others. This that figure to rise. We will support this customers will benefit from the most
includes our groundbreaking approaches We recognise that engaging with young through a range of activities including significant increase in central London’s
to dealing with unwanted sexual Londoners, schools and careers services engaging with schools in highly BAME public transport capacity for decades,
behaviour and hate crime, improving is essential to address the impending populated boroughs, for instance with the line carrying more than 200
the confidence of our customers to skills shortage and challenge the gender Newham, Lambeth and Tower Hamlets. million passengers a year.
report issues and know that action stereotypes placed on girls and young We are developing partnerships with
will be taken. women. Our schools engagement girls’ schools specifically to boost the The Elizabeth line is expected to
programme will continue to encourage number of female apprentices. generate more than £2bn in fares
We are offering customer information young people to consider a future in the income over the next five years. This
in even more languages and Easy Read transport industry, and specifically at TfL. We will also promote inclusive working will support many other elements of
formats and looking at whether there practices by encouraging flexible hours, our plan for modernising the transport
is more we can provide to help people As an internationally renowned STEM reasonable adjustments and initiatives system, while enabling new jobs and
better plan their journeys. We are in (science, technology, engineering and such as our Steps into Work programme, homes and stimulating growth.
touch with grassroots groups across maths) business, we are well placed which offers young people with learning
London to make sure they are aware of to lead this debate. We are launching disabilities the chance to gain valuable
all our services. a Diversity in STEM Advisory Board, work experience within our organisation.
made up of experts in the field, to
And we will continue to consult and make sure our approach is cutting
engage with our customers – particularly edge and effective.
older and disabled people and those Forecast Plan Plan Plan Plan Plan
with hidden impairments – when We will continue to increase the
designing and developing our policies diversity of our graduates and apprentices Passenger journeys (millions) 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
and plans. By doing this, we can strive by targeting our advertising, attending
TfL Rail/Elizabeth line 48 51 80 167 230 232
to remove any barriers faced by specific skills events and developing our
under-represented communities. current graduates and apprentices as
ambassadors. We are working to increase
The ability for all people to travel diversity at senior levels and striving to Forecast Plan Plan Plan Plan Plan
spontaneously and independently reduce any gender pay gap.
Fares revenue (£m) 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
is at the heart of our approach to
accessibility. The new Mayor’s Transport TfL Rail/Elizabeth line 87 93 164 440 727 759
Strategy will look beyond just physical
infrastructure to address barriers such as
overcrowding, safety and affordability.
20 What this plan will deliver Transport for London Business Plan 21Construction is on schedule and within Phased opening of the Elizabeth line
the £14.8bn funding. Over the next two
years, the focus will be on fitting out the
new stations and tunnels in the central
May 2017
section, and testing the infrastructure The first new train enters TfL
and trains to prepare for passenger Rail passenger service between
services. Work will also continue to Liverpool Street and Shenfield
complete the upgrades to the existing
network that are being carried out by
Network Rail between Paddington and
Heathrow/Reading, Liverpool Street and May 2018
Shenfield, and at Abbey Wood. The line opens between
Paddington (National Rail) and
The transition from a construction Heathrow Terminal 4, replacing
project to an operational railway that the existing Heathrow Connect
forms part of our core network will take service and part of the Great
place in five stages. The most significant Western inner suburban service
will be the opening of the route
between Abbey Wood and Paddington
in December 2018, as this is when the
railway becomes the Elizabeth line. December 2018
Services start between Paddington
In December 2019, the Elizabeth line and Abbey Wood, Liverpool Street
will open fully. Until the end of 2019/20, to Shenfield and Paddington to
operating income and expenditure Heathrow Terminal 4
will be included in the Rail divisional
financial summary. From 2020/21,
they will be transferred to London
Underground. Capital spend is included May 2019
in Rail throughout the plan period. The Elizabeth line through-
service extends from
Shenfield to Paddington
December 2019
The new route is fully open
and extends to Reading
Elizabeth line trains being tested at Bombardier’s factory in Derby
22 What this plan will deliver Transport for London Business Plan 23Business at a glance
How we report on our business Facts and figures
By 2021/22...
Underground
Buses 700km
of track on our rail
6.9m
passengers carried
33,000
river trips a day
and Underground daily by London’s (from 29,000 in 2016/17)
Rail* routes (from buses (from 6.2
650km in 2016/17) million in 2016/17)
Roads
Other 1,030
trains on our
30,000
daily cycle hire
network (from journeys (from
* The Elizabeth line (Crossrail) is currently included in Rail. When operations are fully opened in 2019, 930 in 2016/17) 28,000 in 2016/17)
it will move to Underground
Sources of funding (excluding Crossrail construction) Total costs (excluding Crossrail construction)
2016/17 – projected 2021/22 – plan 2016/17 – projected 2021/22 – plan
£0.9bn £0.4bn
(4%) £0.4bn £6.4bn
(10%) £4.7bn £6.3bn £0.6bn £6.9bn
(55%) (61%) (4%) (73%) (6%) (70%)
£0.7bn £0.9bn
(8%) (8%)
£1.1bn £0.6bn £1.1bn £1.6bn
(13%) (5%) (13%) (16%)
£0.5bn £1.1bn
(6%) (11%)
£0.9bn
(10%) £0.8bn
£0.7bn £1.1bn (8%)
(8%) (11%)
Total: £8.6bn Total: £10.4bn Total: £8.8bn Total: £9.9bn
▀ Fares ▀ Other income ▀ Revenue grants ▀ Business rate retention
▀ Borrowing ▀ Property income ▀ Capital grants ▀ Operating costs ▀ Net financing costs ▀ Capital renewals ▀ New capital investment
* The income graph on pg 34 only shows income on the operating account and therefore excludes
capital grants, borrowing and property income
24 Business at a glance Transport for London Business Plan 25Financial summary
Our core financial objective is to achieve
break-even on the operating account – the
income and costs of our day-to-day operations.
Our first milestone is to create a financial in fare revenue growth over the plan.
surplus in 2020/21, having accounted This must be achieved while operating
We aim to do this while safeguarding the Achieving this objective depends on for the annual cost of capital renewals. costs are held down by absorbing
Mayor’s ambitious capital investment two essential elements: Our second is to reach the point where inflation and the additional costs of
programme, which will improve the the total cost of day-to-day operations, running the Elizabeth line.
safety, capacity and reliability of • The successful implementation including the costs of financing, are fully
transport for all Londoners. of a comprehensive cost covered by income. We aim to do this Effective implementation of the cost
reduction programme in 2021/22, after the second full year of reduction programme is also vital.
By keeping operating costs close to current operating the Elizabeth line. To become the modern and efficient
levels, we aim to achieve a position where • Growing passenger numbers by organisation that a rapidly growing
our total income covers the total cost of making public transport increasingly To achieve our milestones we must London needs, we have begun a complete
operations, putting our finances on a solid affordable, reliable and accessible increase the use of public transport in review of our business and ways of
and sustainable long-term footing. the short run, primarily by attracting working. We are addressing unnecessary
customers back to the bus service. In duplication, reducing management
the medium term, we must ensure layers, and driving down the cost of
Operating account the Elizabeth line opens on schedule what we buy from third parties. This
and carries the projected 232 million programme is set out in more detail in
Actual Forecast Plan Plan Plan Plan Plan passengers a year, resulting in £0.7bn the section on cost reduction.
TfL Group
(£m) 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
Fares income 4,587 4,723 4,877 5,120 5,563 6,030 6,327 Capital account
Other operating income 673 702 821 885 918 1,059 1,107 Actual Forecast Plan Plan Plan Plan Plan
Total operating income 5,260 5,425 5,698 6,005 6,481 7,089 7,434 TfL Group
(£m) 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
General grant 591 447 228 – – – –
New capital investment (1,561) (1,100) (1,322) (1,344) (1,284) (1,584) (1,620)
Business rates retention 773 854 854 854 854 854 854
Crossrail (1,506) (1,597) (987) (360) (101) (17) (12)
Other revenue grants 73 57 73 55 37 6 6
Total capital expenditure (3,067) (2,697) (2,309) (1,704) (1,385) (1,601) (1,632)
Total income 6,697 6,783 6,853 6,914 7,372 7,949 8,294
Financed by:
Operating cost (6,299) (6,356) (6,563) (6,502) (6,671) (6,863) (6,925)
Investment grant 925 944 960 976 993 1,010 1,042
Net operating surplus 398 427 290 412 701 1,086 1,369
Property income 407 25 77 100 80 180 389
Capital renewals (853) (857) (659) (737) (728) (767) (753)
Borrowing 598 701 601 600 700 601 601
Net cost of operations
(455) (430) (369) (325) (27) 319 616 Crossrail funding sources 963 138 300 166 46 156 108
before financing
Net financing costs (346) (363) (413) (453) (483) (517) (556) Other capital grants 132 141 214 199 109 82 69
Net cost of operations (801) (793) (782) (778) (510) (198) 60 Total 3,025 1,949 2,152 2,041 1,928 2,029 2,209
Net capital account (42) (748) (157) 337 543 428 577
26 Financial summary Transport for London Business Plan 27Funded by: The principal projects in progress over On roads, buses and rail
the next five years are shown below: • The Silvertown tunnel, as part of a
Actual Forecast Plan Plan Plan Plan Plan broader plan to deliver more river
TfL Group On the Underground crossings in the east
(£m) 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 • The completion and opening of the
Net cost of operations (801) (793) (782) (778) (510) (198) 60 Elizabeth line • The London Overground extension
to Barking Riverside as part of a
Net capital account (42) (748) (157) 337 543 428 577 • A signalling upgrade on the Circle, wholesale regeneration of the area
Working capital movements (521) 26 945 65 (24) (21) (79) District, Hammersmith & City and
Metropolitan lines, creating 33 per • New trains for the DLR and London
(Decrease)/increase in
cash balances (1,364) (1,515) 6 (376) 9 209 558 cent additional capacity Overground to increase capacity
• New trains and signalling on the • The transformation of Oxford Street
Piccadilly line, providing 60 per for pedestrians
cent extra capacity
• A large portfolio of smaller projects to
The Mayor’s capital investment The summary operating account on • More capacity on the Victoria, encourage more walking and cycling
programme is central to delivering the page 26 shows an average level of capital Jubilee and Northern lines – and greater use of public transport.
many schemes and initiatives described renewals (the capital investment required 12 per cent in total This includes progressing a pedestrian
in the section starting on page 11. to maintain the network) of some £750m and cycle bridge between Rotherhithe
a year. The capital account shows that, on • Station upgrades at Victoria, and Canary Wharf
In drawing up this plan, we have average, we must invest £1.4bn annually Tottenham Court Road, Bond Street,
examined the capital programme in capacity, reliability and accessibility Bank, Holborn and Camden Town, Building for the future
carefully to identify a ‘steady state’ level improvements across the network. which will include step-free access • Crossrail 2, a northeast-to-southwest
of capital investment. This balances rail route to relieve congestion on
the vital need to maintain and improve We have scrutinised all capital projects • Further major programmes to lines into Waterloo
transport with supporting London’s to see where costs can be reduced improve accessibility at many other
growth and continued success. through value engineering, while Tube stations • An extension to the Bakerloo line
continuing to deliver the outcomes
Capital renewals is the cost of required in full. We have also reviewed • A large number of housing and
maintaining our network. Much of this project timing to ensure the programme development projects to support the
spend takes place behind the scenes, can be delivered. Mayor’s ambitious housing agenda
but is essential to ensuring a safe and
reliable service.
28 Financial summary Transport for London Business Plan 29Passenger journeys analysis Growth in journeys on the Underground
will be steadier as there will be some
Passenger journeys
(million)
Actual
2015/16
Forecast
2016/17
Plan
2017/18
Plan
2018/19
Plan
2019/20
Plan
2020/21
Plan
2021/22
Variance
2016/17-
2021/22
%
diversion of passengers when the
Elizabeth line opens, particularly on the
Central line. We are, therefore, expecting
the total to rise by nine per cent over
£2bn
of savings from
London Underground 1,349 1,396 1,434 1,455 1,465 1,485 1,525 9% improving
the period of the plan.
London Buses 2,323 2,278 2,310 2,378 2,444 2,484 2,521 11%
procurement and
renegotiating
DLR 117 123 128 128 122 119 124 1%
We have seen a decline in the number contracts
of passenger journeys on buses over the
London Overground 184 196 209 227 254 268 282 44% past year or so. However, as a result of
TfL Rail (including our work to cut congestion and improve
40 48 51 80 167 230 232 383%
the Elizabeth line) reliability, we expect customers to return
London Trams 27 29 29 29 32 35 36 25% gradually over the plan period, resulting
in 11 per cent growth overall.
Dial-a-Ride 1 1 1 1 1 1 1 0%
Emirates Air Line
London River Services
Cycle hire
2
10
10
2
11
10
2
11
10
2
11
11
3
12
11
3
12
11
3
12
11
117%
14%
8%
Cost reduction programme
Under the guidance of the Mayor, we are
carrying out a comprehensive review of
our organisation, and have identified a
£2bn
of savings across
number of areas where costs could be the plan years
Walking 2,385 2,411 2,437 2,463 2,487 2,511 2,535 5% from a new TfL
reduced without affecting day-to-day
Cycling 277 295 314 334 355 378 402 36% operating model
transport services, safety or the capital
Road (car driver) 2,200 2,200 2,200 2,200 2,200 2,200 2,200 0% programme. We have consolidated this
work into a TfL-wide transformation
Taxi 140 142 143 145 146 148 149 5%
programme that has three elements:
Total 9,065 9,142 9,279 9,465 9,698 9,885 10,033 10%
• Receiving better value from our
supply chain
• Ensuring our organisation is lean
Trends in the number of passenger anticipate a five-fold increase in the and efficient
journeys are described in more detail number of journeys on what is currently
in the operational trends section and known as TfL Rail, from 48 million a year • Creating a culture and ways of
the divisional summaries. However, today to 230 million by 2020/21, when working to support a single,
the opening of the Elizabeth line is the the line will have been fully open for integrated organisation that is
single biggest development affecting more than a year. commercially-minded and agile
capacity and passenger journeys. We
30 Financial summary Transport for London Business Plan 31Value In total, we have identified some £2bn
Each year, we spend in excess of £6bn of potential savings across all of the
with our suppliers. We believe that areas mentioned.
we can achieve better value from this
supply chain by improving procurement, Organisation
renegotiating contracts and continually We are re-evaluating every area of our
challenging the standards and scope of business and considering how to merge
works we specify. We anticipate that, functions to create efficiencies, reduce
through rationalisation, consolidation management layers and eliminate
and improved contract management, duplication in line with a new operating
we will make substantial savings across model. We expect the redesigned model
a wide range of current contracts. to deliver £2bn of savings across the
plan years.
We have already begun to reduce costs
and have identified further commercial Culture
opportunities over the next five years. It is vital that our transformation
We are in the process of negotiating programme leads to permanent cost
further savings by: reductions so we can achieve the
milestones described in the financial
• Consolidating facilities summary, and make the business
management contracts sustainable in the medium and long
term. We cannot allow costs to creep
• Exiting expensive legacy Private back upwards; we must drive revenue
Finance Initiative and Public up and continue to keep costs down.
Private Partnership contracts This is the beginning of a culture
change programme that will instill a
• Driving best practice through more commercial mind-set, develop
our maintenance contracts more collaborative ways of working
and encourage greater innovation
• Consolidating our head and creativity.
office accommodation
We are determined to develop a
• Seeking to bring together functional more diverse and inclusive employee
teams that have previously been group as we believe this is essential
dispersed across TfL, for instance to the success of a renewed TfL.
engineering and capital delivery
• Forensically examining a huge range of
supplier contracts that represent more
than 68 per cent of our total costs
Walk-through trains will provide more capacity
32 Financial summary Transport for London Business Plan 33Financial trends
We want to make our finances more transparent
and easier to understand.
Total income Total costs
(£m) (£m)
8,000 7,380 7,481
9,000 8,294 7,154
7,949 6,976 6,955
6,645 6,719 7% 7%
8,000 7,372 14% 7,000 6,398 6% 7%
6,872 6,875 6,783 6,853 6,914 13% 5,959 6,080 5% 5% 7%
6,733 6,697 5% 93% 93%
7,000 12% 10% 6,000 8% 5% 94% 93% 93%
10% 9% 10% 10% 10% 12% 13% 11% 95% 95% 95%
6,000 12% 92% 95%
35% 32% 26% 21% 20% 17% 13% 76% 5,000
76%
5,000 76%
71% 74% 4,000
4,000 69% 70%
59% 64% 3,000
3,000
55%
2,000
2,000
1,000 1,000
0 0
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
Actual Forecast Plan Actual Forecast Plan
▀ Fares income ▀ Revenue grants ▀ Other income ▀ Operating costs ▀ Net financing costs
Over the 10-year period from 2012/13 to • Increased congestion caused by a This financial plan depends on the In 2016/17, we expect our outturn
2021/22, the proportion of total income proliferation of major road projects successful delivery of a major cost operating costs to be £6.4bn and we
generated by fares will have grown reduction programme. To achieve our are planning that, by 2021/22, they will
from 56 per cent to 76 per cent. We are • Urban improvement schemes financial milestones and maximise the be no more than £6.9bn. This rise – just
committed to making public transport benefit of the increase in income, we nine per cent – includes both inflation
in London more reliable, accessible and • A huge rise in the number of must hold costs down. and the increased costs of operating
affordable, so the growth from 2017/18 private hire vehicles the Elizabeth line, which are offset
relies on increased use rather than fare by savings. We will only achieve this
rises. The proportion of grant income • London’s population growth, which ambitious target if we fully implement
will have decreased from 35 per cent to has increased freight delivery and the transformation programme.
10 per cent over the same period. other traffic levels
Fares income is primarily driven by We must attract customers back on
greater use of public transport, of which to our buses with a more reliable and
a significant proportion will come from affordable service, and by moderating
the opening of the Elizabeth line. Over the volume of roadworks. This is vital
the first two quarters of 2016/17, the because fares income represents,
number of fare-paying bus passengers was proportionately, a greater slice of total
five per cent down on last year, owing to: income over the coming years as the
general grant from central Government
• Extensive construction projects is reduced to zero.
34 Financial trends Transport for London Business Plan 35Capital expenditure (excluding Crossrail)
(£m)
3,000
2,414 2,351 2,373
2,500
1,981 2,081 2,012
1,944 65% 1,957 68%
67%
2,000 1,643 1,593 65% 64%
52% 56% 67%
1,500 47% 46%
1,000
53% 54% 48% 35% 44%
500 35% 36% 33% 32%
33%
0
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
Actual Forecast Plan
▀ Renewals ▀ New capital investment
Details of the individual elements of
44%▲
the new capital investment programme
are set out in the divisional summaries
and appendices. However, the high-level
summary of capital expenditure in this Total increase in capital
plan is that: expenditure since 2012/13
• We have established an equilibrium
level of capital renewals, of £730m
per annum on average, over the
next five years
• We are planning for a financially
£2.4bn
Capital expenditure in 2021/22
sustainable level of new capital
investment of £1.4bn a year,
on average
Very large single projects such as the
Elizabeth line, Crossrail 2, Bakerloo line
extension and the Silvertown tunnel need
to be considered in addition to this normal
Charing Cross station entrance, Trafalgar Square level of expenditure, as they cannot be
financed from current sources of funds.
36 Financial trends Transport for London Business Plan 37Borrowing and cash
Total nominal value of borrowing
(£m)
14,000 12,948
12,348
11,748 600
11,048 600
12,000 10,449 700 12,348
9,849 600 11,748
10,000 9,146 601 11,048
8,548 701 10,448
7,898 598 9,848
7,565 650 9,148
8,000 333 8,548
420
7,565 7,898
7,145
6,000
4,000
2,000
0
2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22
Actual Forecast Plan
▀ Opening balance ▀ Incremental borrowing
Our direct debt (excluding finance Our Business Plan assumes we will
leases) is expected to reach £9.8bn by raise an additional £600m in debt in
the end of 2016/17. It is then expected to 2021/22. Borrowing to be raised over
increase by between £600m and £700m the plan period will be used to finance
year-on-year, reaching £12.3bn by the our investment programme, including
end of 2020/21. The total incremental capacity and station upgrades on London
borrowing to be raised by March 2021 is in Underground, new rolling stock for
accordance with the agreement reached the Elizabeth line and investments in
with HM Treasury as part of the 2015 cycling infrastructure.
Spending Review.
Tottenham Court Road Tube station
38 Borrowing and cash Transport for London Business Plan 39You can also read
