London Daily

Focus on the big picture.
Monday, Jul 21, 2025

Sadiq Khan plans London council tax rise amid TfL funding crisis

Sadiq Khan plans London council tax rise amid TfL funding crisis

Capital’s mayor may also reduce free travel for over-60s if government fails to fund Covid-hit transport system
Sadiq Khan said he would have to raise council tax in London and reduce free travel for over-60s, with the government yet to offer a deal to fund the pandemic-hit transport system.

The London mayor accused ministers of planning to “unfairly punish Londoners” by refusing to agree longer-term financial aid for Transport for London, which relies on fare revenues that have dropped by billions of pounds during the Covid pandemic.

A funding deal expired on Saturday and while the government has agreed to prolong the terms by a week, it demanded Khan explain by Wednesday how he would raise additional income.

The mayor has ruled out an additional fare rise but bowed to demands to review concessionary travel, particularly for older passengers, raising the age of the over-60 Oyster card, which allows holders who live in London to travel free of charge.

The biggest change will be an increase in council tax, via the London precept collected for City Hall, by about £20 per property a year.

Khan said: “The sole cause of TfL’s financial problems is Covid-19 and, with the emergence of the Omicron variant and the new guidance to work from home, it’s never been more urgent for the government to agree a fair, sustainable, long-term funding deal for TfL – for the benefit of our capital city and the whole country.

“Train companies across the UK have faced the same emergency funding issues as TfL. In every case, the government has bailed out the private rail operators with long-term agreements. However, the government is treating London differently.”

He accused ministers of “holding London to ransom” by threatening to withhold funding without forcing changes, and that he had been left with no alternative but to plan to increase council tax. Fares were raised by 1% above inflation as part of the earlier agreements, but Khan said: “I refuse to hike up fares further as this would be unfair and counterproductive, discouraging Londoners from using public transport.”

He said that even with the additional revenue through tax, TfL would still have to make significant cuts to bus and tube services, leading to “managed decline”.

Other proposed changes include applying all-day peak fares to Heathrow on the tube, raising the price of an Oyster card deposit, and stopping the use of rail travelcards to reduce ticketing costs.

Ministers have said throughout that they will ensure continued funding for the capital. The transport secretary, Grant Shapps, said earlier this week: “The government is committed to supporting London and the transport network on which it depends, whilst balancing that with supporting the national transport network.”

TfL meanwhile has warned passengers of widespread disruption on the tube network on Friday evening and Saturday, with strike action by the RMT likely to close several lines and lead to much busier services elsewhere, in an ongoing dispute about staffing the night tube.
Newsletter

Related Articles

0:00
0:00
Close
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
Microsoft, US Lab to Use AI for Faster Nuclear Plant Licensing
Trump Walks Back Talk of Firing Fed Chair Jerome Powell
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Irish Tech Worker Detained 100 days by US Authorities for Overstaying Visa
Dimon Warns on Fed Independence as Trump Administration Eyes Powell’s Succession
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Jeff Bezos Considers Purchasing Condé Nast as a Wedding Gift
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
×