Supplementary memorandum from Department
for Transport (DfT) (UPP 07a)
In response to a request from Mr Stringer MP
during my oral evidence to the Committee on 9 December 2009, I
undertook to provide details of funding London Underground Ltd
(LUL) has received from central government, the farebox, the private
sector and London's council taxpayers.
The attached table sets out the sources and
amount of funding for the six full years since the introduction
of the PPP and so that you can compare, the six years prior to
this. I have also included details of the substantial "other
revenues" that this public and private sector investment
has attracted, including advertising revenues and contributions
from developers and other train operating companies. Once inflation
has been taken into account, farebox and "other revenue"
has increased by over 20% (£2.77 billion).
From 2007-08 onwards the grant to Transport
for London (TfL) has not included a ring fenced element for LUL.
The figures provided for 2007-08 and 2008-09 are therefore based
upon the amounts we expected to be allocated to LUL in these two
years at the time of the CSR 2004 settlement.
Mr Stringer also asked how much local tax payer's
money has gone into the Tube. TfL receives revenue from the Mayor's
precept on council tax bills in London, and in their current business
plan they forecasts receipts of £12 million a year from this.
This does not include a ring-fenced amount for the Tube.
I hope this clarifies the position on funding.
LONDON UNDERGROUND FUNDING (THE AMOUNTS SHOWN
ARE IN CASH PRICES)
| Source | 1997-98
| 1998-99 | 1999-00
| 2000-01 | 2001-02
| 2002-03 | Total
pre PPP
| 2003-04 | 2004-05
| 2005-06 | 2006-07
| 2007-08
**** | 2008-09
****
| Total
post PPP |
DfT Grant | £554m
| £313m | £640m |
£272m | £518m | £860m
| £3.157bn | £1.333bn
| £1.146bn | £1.256bn
| £1.376bn | £1.744bn
| £1.540bn | £8.395bn
|
| Farebox Revenue | £899m |
£977m | £1.101bn | £1.229bn*
| £1.251bn* | £1.244bn*
| £6.701bn | £1.161bn
| £1.24bn | £1.307bn
| £1.415bn | £1.524bn
| £1.613bn | £8.26bn
|
| Private sector borrowing & equity raised by PPP infraco
|
0 |
0
|
0 |
0
|
0 |
0
|
0 | Tube Lines
£281m***
Metronet
£550m***
|
£281m
£550m
|
£281m
£550m
|
£281m
£550m
|
£281m
|
£281m
|
£1.686bn
£2.20bn
|
| Other Revenue** | £61.7m
| £68.6m | £36.7m |
— | — | —
| £167m | £216m
| £196m | £251m |
£235m | £222m | £258m
| £1.378bn |
| Total | |
| | | |
| £10.025bn | |
| | |
| | £21.919bn |
*LUL only report the total sales revenue in these years so will include "other revenue".
**Other revenue includes items such as advertising space and capital contributions, eg from Train Operating Companies and developers
***Tube Lines & Metronet's loans and equity are given an even profile over the first period (7½ years) for Tube Lines and for four years for Metronet. It is for the infraco to determine when spent.
**** The CSR 07 settlement to TfL in these two years and beyond is not ring fenced but the figures provided are the amounts the DfT set out in its agreement for CSR 2004 would expect to be paid to LUL in these years and on top includes the sums following the collapse of Metronet. It is for TfL to determine the precise allocation from all their source of revenue streams. The row also includes grants for the Kings Cross redevelopment project from 2000-01 onwards.
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