How much debt did TFL have at the beginning and end of each financial year from 2015/16 to 2019/20 and what are the reasons for the new debt at the end of each year?
www.london.gov.uk
Answered By:
The Mayor
Date:
Wednesday, 8th July 2020
Borrowing has been an important source of financing for Transport for London (TfL) and supports its capital investment programme. All incremental borrowing raised by TfL is in line with the amounts agreed with Government as part of previous funding settlements. The borrowing is only used to fund capital expenditure (TfL is not able to use borrowing to cover operating expenditure).
The majority of TfL’s borrowing was incurred between 2008/09 and 2015/16, where TfL accrued c. £7bn of debt. The rate of borrowing has since slowed, and as shown in TfL’s latest business plan it has not assumed any additional borrowing from 2022/23.
The proceeds of this borrowing have been used to complete a range of projects that were initiated prior to 2015/16, including major London Underground station upgrades (such as the Victoria station upgrade), signalling upgrades (such as the upgrades to the Circle, District, Hammersmith & City and Metropolitan lines), Crossrail trains and infrastructure, step free station access and others.
The below shows TfL’s outstanding borrowing at the end of each year from 31 March 2015 to 31 March 2020:
Debt as at:
31 March 2015 £8.5bn
31 March 2016 £9.1bn
31 March 2017 £9.8bn
31 March 2018 £10.4bn
31 March 2019 £11.1bn
31 March 2020 £11.7bn
So it looks like Boris borrowed c. 7bn in 8 years, and Sadiq borrowed 2.6bn in 4 years. Simplistically that's £650k of borrowing per year for Sadiq vs £850k for Boris.