Sadiq Khan allowed to raise council tax to help Transport for London

The government has granted mayor Sadiq Khan’s request to add £20 to council tax to help the struggling Transport for London (TfL).

While Khan says the additional levy for three years is the only way to save the transport network from collapsing, Levelling Up Secretary Michael Gove called the move “disappointing” as people are struggling with the cost-of-living squeeze.

Once implemented from April, the measure is expected to yield £172m for the TfL which is yet to see its revenue from fares reaching the pre-pandemic levels.

Gove said the government had expressed concern about the management of TfL by the mayor and “it is disappointing that London taxpayers are having to foot the bill for the GLA (Greater London Authority)’s poor governance and decision-making.”

“Whilst the Government will not oppose this request, any decision to increase the precept is solely one for the Mayor, who should take into account the pressures that Londoners are currently facing on living costs and his decision to raise council tax by 9.5 per cent last year.”

But Khan’s office blamed the government for the financial difficulties the TfL is currently facing.

His spokesperson said the government’s removal of its operating grant in 2015 made the TfL over-dependent on its fares income, which created a financial emergency when the pandemic hit.

Passenger numbers have increased since the easing of the pandemic but they “are yet to reach pre-Covid forecasts.”

“TfL was previously on a solid financial footing thanks to Sadiq,” the spokesperson said.

“The GLA has been forced to consider raising council tax by the Government to keep our Tubes and buses running. This is an extraordinary attempt to rewrite history by the very Government who insisted the Mayor raise over £500m a year as a condition of emergency funding for TfL - including explicitly proposing that council tax was raised to do so.”