Sadiq Khan has said that the Greater London Authority could raise its part of the council tax Londoners pay by £20 a year over three years to help Transport for London (TfL) meet the yawning hole in its budget.
The mayor accused the government of “holding London to ransom” over the funding talks for TfL’s latest deal, which are due to finish on Saturday (December 18).
He added that ministers were “threatening to withhold all emergency funding unless even more significant additional revenue is raised from Londoners for TfL.”
Part of the council tax Londoners pay is set by the Greater London Authority, with the rest set by each council. This hike would raise an estimated £172mn – a relatively small amount in comparison to the £1.7bn hole the pandemic has blown in TfL’s budget.
Other fund-raising measures could include increasing the age at which people can travel for free on London public transport.
Khan’s comments sparked warnings from other London politicians and union chiefs.
Mick Lynch, general secretary of RMT, the union that represents many Tube drivers, Mick Lynch said Khan’s threat should be a “wake up call” about the future of London’s transport.
“This looming financial meltdown would mean a return to the dark days of a crime ridden tube network falling apart at the seams with increasing levels of pollution and transport poverty.
“Increasing the age of eligibility for free travel is effectively a pensioner’s tax for which the government will never be forgiven
“This is a shameful way to treat London and London’s key transport workers and this union stands ready to fight any cuts programme whatever direction it comes from.”
A government spokesperson said: “We received a response from the Mayor on income generation proposals which can move TfL towards a financially sustainable future, in a way that is fair to the national taxpayer.
“However, these were provided past the original deadline and Government has asked the Mayor for further clarifications in order to be able to assess those options, before discussions take place on a further funding settlement.”