London transport system secures £1.8bn government bailout

Mayor Sadiq Khan welcomes Transport for London deal

UK government gives London underground operator Transport for London a bailout. AFP / Isabel INFANTES

London's transport system has been given a £1.8 billion ($2.33bn) bailout after the coronavirus pandemic destroyed its revenues.

The announcement was made on Sunday ahead of England being plunged into a second lockdown.

Transport for London (TfL), which runs the British capital's public transport network, secured the government funding to enable it to continue running services until March.

The government pumped £1.6bn into the system in May to restore services and help prevent overcrowding as people returned to work when the first national shutdown was eased.

From Thursday, England will begin a four-week lockdown with people ordered to stay at home except in cases where exemptions apply, such as for essential work, education or exercise.

Pubs and restaurants will shut unless serving takeaway food, while all leisure and entertainment venues and non-essential shops will close.

TfL said the exact amount of money it will receive from the government would be subject to passenger revenue in the coming months.

London mayor Sadiq Khan, from the opposition Labour party, had for weeks been opposing raising fares in exchange for the funding boost.

He said it was not "a perfect deal" but that he had succeeded in "killing off the very worst government proposals".

Transport Secretary Grant Shapps described the agreement as "fair to taxpayers across the country".

Last month, Prime Minister Boris Johnson had claimed TfL was "effectively bankrupted" before the coronavirus pandemic and said proposals to raise fares were "entirely the responsibility" of Mr Khan.