TfL £4.5billion bailout is extended until Friday as City Hall and government are locked in talks

Transport for London has agreed with the Government to extend its existing funding package – but only until this Friday.

It is the latest in a series of short-term extensions as the transport body tries to secure a long-term deal, amid huge pressure.

TfL has repeatedly issued stark warning that it will be forced to begin ‘managed decline’ of the capital’s public transport network unless it secures a multi-year funding deal to replace fares revenue lost during the coronavirus pandemic.

But some services on the Underground have been lacking in recent weeks, with delays making thousands late for work.

A TfL spokesman said: ‘We have agreed with the Government that our existing funding agreement will be extended until February 25 so that these discussions can be concluded.

‘Working together, we must achieve a longer-term capital funding settlement of at least three years that ensures London’s transport network can remain reliable and efficient, can support the jobs and new homes that rely upon it and can support the economic recovery of the capital and the country as a whole.

Mayor of London Sadiq Khan said the small extension will let negotiations carry on

Secretary of State for Transport Grant Shapps said TfL wanted more time to consider deal

TfL has agreed with Government to extend funding package until Friday as talks continue

‘We hope these discussions can be concluded successfully soon.’

The Department for Transport insists it has ‘repeatedly shown its commitment’ to supporting TfL during the pandemic by providing more than £4.5 billion in emergency funding.

Transport Secretary Grant Shapps said: ‘We have provided TfL with a deal that both supports London’s transport network and is fair to taxpayers across the UK.

‘They have asked for more time to consider the settlement, therefore we have agreed a short extension until February 25 for this to take place.’

People getting on the bus at a bus station in central London last week as the deal end neared

TfL has said that if there is not an injection of cash there will be a managed decline of service

In response to the short-term extension of Transport for London’s (TfL) funding package, mayor of London Sadiq Khan said: ‘This extension to the current funding deal until Friday February 25 will allow negotiations to continue.

‘The pandemic is the only reason TfL is facing a financial crisis.

‘I urge the Government to engage with TfL and City Hall in good faith so that we can finally agree a fair, long-term funding deal that will protect London’s transport network – for the sake of the capital and the whole country.

‘London’s economy plays a huge role in the national economy and around 43,000 jobs outside London depend on TfL’s investment.

‘If the Government fails to support TfL at this difficult time, it could impact TfL’s UK-wide supply chain, hitting jobs and growth and holding back the economic recovery in London and across the UK.’