Transport for London

Wednesday 11 Jun 2025

TfL Statement - Response to Spending Review Settlement

TfL Statement - Response to Spending Review Settlement: TfL Image - London Underground Roundel

Andy Lord, London’s Transport Commissioner, said: “We are grateful that the Government has agreed a much-needed multi-year capital funding agreement similar to those in place with Network Rail and National Highways.

"This settlement will ensure that London’s transport network can continue to support new homes, jobs and economic growth in the capital. And it will boost jobs, skills, growth and opportunities across the UK. It will allow us to deliver a programme of sustainable investment, aligning our suppliers around a longer-term programme. And it will mean that we can complete the introduction of new trains on the Piccadilly line and DLR and new signalling on 40 per cent of the Tube, can procure a new tram fleet, progress discussions on new Bakerloo line trains and can get to work on renewing some of London’s critical roads, tunnels and flyovers.

"Our supply chain supports growth and opportunities right across the UK, with around two thirds of our suppliers based outside London, and nearly a third of our overall spend and resulting economic benefit felt outside of our city. We are pleased that, together with our suppliers, we can move on from the short-term and stop-start nature of funding over recent years and get on with the vital work of making our city and our country work for everyone.

"The prevailing macro-economic conditions and other factors mean that we will continue to have to make at times difficult decisions and we will need to continue to carefully prioritise investment and control our costs. We will now work through the detail of the agreement before re-setting our business plan for the years ahead."

Contact Information

TfL Press Office
Transport for London
0343 222 4141
pressoffice@tfl.gov.uk

Notes to editors

  • The settlement announced today sets out £2.2bn in capital funding for TfL over four years.
  • TfL is one of the only transport authorities in the world that can cover its own day-to-day operating costs - which will continue under this settlement -  as well as the majority of a more than £2.1bn annual capital investment programme. But Government capital investment support is vital to ensure that the capital’s transport network can continue to be modernised and can support the city and the country’s economic growth.
  • London’s annual net contribution to the national exchequer is at a record £43.6bn, so supporting growth in London is critical to delivering the national growth mission. 
  • At the same time, TfL has continued to make the organisation more efficient – with £1.5bn of savings being delivered since 2016.
  • The most recent analysis confirms TfL’s long-standing role in being a national engine of growth and demonstrates how powerful and economically important TfL’s supply chain is. 
  • Across the previous two years, TfL spent over £12 billion with more than 3,000 UK suppliers. This has supported over £11 billion in total Gross Value Added. Nearly a third of TfL’s supply chain activity and economic benefit fell outside of London. TfL spend supported 100,000 full time jobs each year.