TRAVEL: Budget shortfall could cause TfL fare increases (From News Shopper)

TRAVEL: Budget shortfall could cause TfL fare increases

9:17am Thursday 19th March 2009 in News

TRAVEL: Budget shortfall could cause TfL fare increases

BUS passengers could be hit with a fare increase next year to cover a £600m Transport for London (TfL) budget shortfall.

London’s transport commissioner Paul Hendy had hoped to make £2.4bn in efficiency savings at TfL.

But it is now thought that only £1.8bn savings can be achieved and the shortfall may have to be made up by increases in Tube and bus fares.

London Assembly budget and performance committee chairman John Biggs said: “The Budget and Performance Committee is all too aware of the difficulties facing Transport for London.

“Two months ago, we warned that TfL is the functional body most vulnerable to the recession because of ridership and the resulting effect on fares income. “We highlighted the difficulties facing TfL and the risks to the services it provides.

“The risk to TfL’s finances and the role of fares in funding the organisation is a priority for this year and the Committee is looking at launching an investigation next month.”