Businesses urge ministers not to raise cost of London transport
Businesses across London have urged ministers and the Mayor to strike a deal to stop public transport prices surging in the capital, warning big increases will worsen the economic disaster of Covid-19.
Sadiq Khan is at loggerheads with the Government over talks for a bailout to keep Transport for London afloat, but ministers are insisting on big fare rises and a wide extension of the Congestion Charge.
London businesses today warned such a deal would do huge damage to the capital’s recovery from the pandemic.
They warned it would serve to further dissuade office workers from coming into the city, supporting local restaurants, bars and theatres.
They warned it would also put off tourists and prevent people from the suburbs and surrounding counties from coming in to London for shopping and entertainment.
Pub giant Greene King’s chief executive Nick Mackenzie said: “Hammering workers and tourists with higher fares and extending in the congestion charge would be a disaster for businesses in London and cost more jobs.”
Patrick Dardis, the chief executive of London pub group Young’s, said: “London is already on its knees. What London needs is a post-Covid strategy to get it out of this mess, not more increases.”
Kate Nicholls, chief executive of trade association UKHospitality, which represents pub, restaurant and club owners, warned rises “will have a significant effect on hospitality venues”, particularly in central London.
Nicholls said: “If fares become prohibitively expensive, customers will be deterred from going out. The impact on city centre venues could be disastrous. We do not need another setback at such a difficult time as this.”
Others have warned that the crisis appears to be getting bogged down in political squabbles between Conservative ministers and a Labour Mayor.
Last night, the London Chambers of Commerce called on London MPs of all parties to push for calm, non-partisan heads to prevail.
Today, Eddie Curzon, CBI London Director, added his voice to that call.
He said: “The safe and efficient operation of London’s transport network will be a cornerstone of our capital’s economic recovery — it’s relied upon by both passengers and businesses alike.
“Ensuring that Transport for London is able to navigate the funding crisis the pandemic has presented and avoiding protracted negotiations is crucial in the coming weeks.”
Starved of ticket revenues by the Covid lockdowns, the Mayor is trying to secure £4.9 billion of state funding to keep TfL going for the next 18 months.
Businesses are increasingly concerned at the lack of a recovery plan for when Covid finally gets under control.
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