The Mayor of London Boris Johnson says the recently announced fare rises in the capital are required "having cut costs to the bone" at Transport for London after being "ruthless in finding savings." It is true that the target for efficiency savings for the nine years from this year to 2017-18 has been raised from the £2.4 billion that Boris initially demanded to an extra £2.6 billion - this makes a total of £5 billion or £555 million a year.
But the spending total remains vast. The Transport for London budget this year is £7.7 billion with nearly £3 billion a year in subsidy from central government. The point is not that saving half a billion a year is an unimportant achievement. It is whether more, an awful lot more, could be done.
TfL doesn't even cover its operating costs from its own revenue. Last year its operating revenue (mostly fares) was £3.45 billion. Even this figure is artificially high as it includes the Freedom Pass costs paid by the Borough Councils ("revenue in respect of free travel for elderly and disabled people", £227 million) and this year the income figure is expected to be very slightly lower - £3.44 billion.



















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