Business Plans (Published) Digital Records

Mayor's message Commissioner's foreword Chief Finance Officer foreword Business at a glance Financial context Building financial sustainability Assets and investment priorities Forecasting and trends Delivering the Mayor's Transport Strategy Healthy Streets and healthy people A good public transport experience New jobs and homes Our services

Introduction 2 Efficient and effective business operations 5 Crossrail 7 London Underground and London Rail 9 Surface Transport 14 Appendix: GLA tables and notes to tables

Message from the Commissioner Transport for London’s role 1 Introduction 1 2 TfL’s Business Plan 5 3 Outcomes of our plan 27 4 Financing our plan 39 5 Conclusions 44 Appendices A Achievements since 2000 45 B Equality and Inclusion 48 C Environment Plan 57 D Health and Safety 68 E Main TfL projects, population change and London Plan development areas to 2016 81

Mayor's introduction Commissioner's foreword What this plan will deliver Business at a glance Financial summary Financial trends Borrowing and cash Operational trends Underground Buses Rail Roads Other operations TfL Group balance sheet Major new capital investment

Mayor’s introduction 6 Commissioner’s foreword 10 Delivering the Mayor’s Transport Strategy 12 The focus of this plan 18 Healthy Streets across London 20 What we will deliver 28 Business at a glance 30 Financial summary 36 Financial trends 40 Key milestones of the Investment programme 42 Borrowing 44 Operational trends 46 Transformation programme 50 Diversity and inclusion 52 Buses 60 Streets 70 Rail 76 Underground 84 Elizabeth line 88 Other operations 94 Commercial Development 98 Appendices

4 Message from the Mayor 6 Commissioner’s foreword 8 Background 10 Driving London’s employment and population growth 28 Putting customers at the heart of the business 34 Making life in London better for all 46 Financing the plan 54 Financial tables

Mayor’s message 06 Commissioner’s foreword 08 Chief Finance Officer foreword 10 Business at a glance 12 Financial context 14 Building financial sustainability 32 Assets and investment priorities 46 Forecasting and trends 60 Delivering the Mayor’s Transport Strategy 76 Healthy Streets and healthy people 80 A good public transport experience 94 New jobs and homes 104 Our services 110 Appendices 156

Mayor’s message 04 Commissioner’s message 06 Introduction 08 Customers – the heart of our business 10 Table 1: Service and passenger journeys 19 Table 2: Customer satisfaction 20 Table 3: Cycling levels 21 Delivery – our plans and promises 22 Table 4: Environment 46 Table 5: Reliability 46 Table 6: Safety and security 47 Our people – dedicated to customer service 48 Value – delivering more with less 52 Financial summary 58 Sources of cash 60 Financial tables Budget 2016/17 62 Table 7: TfL Group Operating Account 62 Table 8: TfL Group Capital Account 63 Table 9: TfL Group Balance sheet 64 Table 10: TfL Group Cash summary 65 Budget 2016/17 by business unit 66 Table 11: Rail & Underground Budget 66 Table 12: Surface Transport Budget 67 Table 13: Specialist Services Budget 67 Five-year Business Plan 68 Table 14: TfL Group 5-year Operating Account 68 Table 15: TfL Group 5-year Capital Account 69 Key milestones in 2016/17 70

Mayor’s foreword 4 Commissioner’s foreword 5 Our customers 6 London’s strong green heartbeat 7 Our colleagues 9 Our finances 10 Key reporting themes 11 Progress towards our goals 14 Securing our future 15 Building our resilience 16 Conditions of our funding agreement 17 Funding sources 18 Forecasting and trends 19 Funding our capital programme 20 Income statement 22 Capital expenditure 25 Growing our income 27 Our savings programme 28 Working with our supply chain 29 Prioritising investments to meet our strategic outcomes 30 Healthy Streets and healthy people 31 Safe streets 34 Active streets 36 Efficient travel 38 Green travel 40 A good public transport experience 41 Accessible travel 43 Quality transport 46 Connecting London 48 New homes and jobs 49 Unlocking London 52 Sustainable development

Message from the Commissioner 2 Transport for London’s role 4 Executive summary 7 1 Introduction 13 2 TfL’s Business Plan 25 3 Outcomes of TfL’s Plan 55 4 Financing TfL’s Plans 63 5 Conclusions 69 Appendices A Equality and Inclusion Plan 71 B Sustainable Development Business Plan 84 C Health and Safety 102 D Targets for implementation of the Mayor’s Transport Strategy

Message from the Mayor 4 Commissioner’s foreword 6 Introduction 9 Customers: The heart of our business 10 Getting the basics right 12 An accessible system 16 Improving the customer experience through technology 21 Engaging with our stakeholders 24 Partnership working and funding improvements 27 Delivery: Our plans and our promises 28 Our capability 28 A foundation of well-maintained infrastructure 30 Maximising capacity on our network 34 Unlocking growth for the future of London 42 Making life in London better 49 Our delivery timeline 58 Our people: Dedicated to customer service 60 An organisation fit for London 62 Continually improving 63 Supporting jobs across the UK 65 Value: Getting more for less 68 The 2013 Spending Review 70 Our funding 74 Sustainable use of our resources 78 Managing risks 79 Financial tables 80

Mayor’s introduction 6 Commissioner’s foreword 10 Delivering the Mayor’s Transport Strategy 12 The focus of this plan 18 Healthy Streets across London 20 What we will deliver 28 Business at a glance 30 Financial summary 36 Financial trends 40 Key milestones of the I nvestment programme 42 Borrowing 44 Operational trends 46 Transformation programme 50 Diversity and inclusion 52 Buses 94 Commercial Development 98 Appendices Transport for London Business Plan 3 60 Streets 70 Rail 76 Underground 84 Elizabeth line 88 Other operations 94 Commercial Development

Message from the Mayor Commissioner’s foreword Future plans to 2017/18 Financing Transport for London’s plans

Forewords 6 Sadiq Khan: My vision for London 8 Mike Brown MVO: Overcoming new challenges 10 The financial context 12 Delivering the Mayor’s Transport Strategy 14 The strategy and vision 16 Making the vision a reality 18 Healthy Streets and healthy people 24 A good public transport experience 30 New homes and jobs 34 Business at a glance 36 Forecasting and trends 38 Forecasting 44 Operational trends 46 Building a sustainable business 48 Building financial stability 56 Borrowing 58 Long-term capital plan 60 Facing our challenges 62 Developing diversity 66 Our services 68 Streets 78 Buses 86 Rail 94 London Underground 102 Elizabeth line 106 Other operations 114 Commercial Development 120 Professional services 124 Appendix 127 TfL Group balance sheet 128 Major new capital investment

Commissioner’s message 2 Executive summary 4 1. Background and context 13 2. TfL’s Business Plan 17 3. Focusing on sustainability 47 4. Outcomes of the Plan 61 5. Financing TfL’s plans 69 6. Conclusions 79 Appendices A. Mayoral targets 84 B. Operating facts 86

Message from the Mayor Commissioner’s foreword Efficient and effective business operations Key priorities to 2017/18 Crossrail London Underground London Rail Surface Transport Safety and security Fares, ticketing and customer information Working with London boroughs and other partners Financing TfL’s plans

Message from the Mayor Commissioner’s foreword Future plans to 2017/18 Financing Transport for London’s plans

Message from the Mayor 4 Commissioner’s foreword 6 Customers: the heart of our business 13 What we do 14 Improving transport services 15 Improving the customer experience through technology 18 Delivery: our plans and our promises 29 Maximising capacity on our network 30 £4bn investment in London’s roads 36 Maximising traffic flow through innovative technology 39 Unlocking growth for the future of London 42 Making life in London better 48 Reducing casualties and fatalities – targeting vulnerable road users 54 Reducing crime further 56 Delivering sustainable transport 59 Mayor’s Air Quality Fund 62 Our delivery timeline 64 Our people: dedicated to customer service 66 Recruiting individuals with the right skills, knowledge and behaviours 68 Supporting career progression and development 69 Rewarding our people 70 Promoting diversity and supporting society 70 Educating, inspiring and providing opportunity 71 Supporting the UK economy 72 Value: providing value for money 75 A commercially focused organisation 76 Efficiencies 76 Fares 79 Government funding 80 Prudential borrowing 80 Risk 81 Financial tables 82

Commissioner’s Foreword 7 Executive Summary 8 1 Chapter 1: Strategic Context 8 2 Chapter 2: Impact of the pandemic and potential future scenarios 9 3 Chapter 3: Economic fundamentals of TfL business areas 12 4 Chapter 4: Becoming an economic and efficient operator and the public service obligation 16 5 Chapter 5: Achieving financial sustainability 17 6 Chapter 6: Bridging the gap 20 1.Strategic Context21 Chapter Summary21 TfL’s vital role in London21 TfL and the London economy22 Benefits of London and TfL to the wider UK economy24 TfL’s key role in supporting wider Government objectives27 Consequences of underinvestment and risks of increased congestion30 A critical period for transport and London and the wider UK economy30 2.Impact of the pandemic and potential future scenarios32 Chapter Summary32 Pre-COVID-19 pandemic funding and financing position32 Impact of the coronavirus pandemic on demand and revenue in 2020/2135 Scenarios for medium to long term demand and revenue37 Future scenarios for the financial sustainability gap41 3.Economic fundamentals of TfL business areas51 Chapter Summary51 Buses and streets52 Rail, Tube and Elizabeth line59 Property and Land68 4.Becoming an economic and efficient operator and the public service obligation 73 Chapter Summary 73 Introduction 74 The current TfL funding model and the need for change 74 A clear set of objectives for structural reform 75 Creating enhanced statutory public service obligations 76 Conclusion 78 2 5. Achieving Financial Sustainability 79 Chapter Summary 79 Service levels 79 Operating efficiencies 83 Pay, benefits and pensions 88 Prioritisation and efficiency of capital investment 89 Commercial development activities 93 Existing funding levers 95 Other potential funding sources 100 Debt, liquidity and reserves 106 6. Bridging the gap 111 Introduction 111 Target dates for implementation of recommendations 111 Next steps 114 Indicative timeline for future activity 115 Figures Figure 1: Number of jobs supported by London Underground’s supply chain and amount of funding generated by region 25 Figure 2: Government funding history (excluding Crossrail and one-off funding) 32 Figure 3: Debt profile 32 Figure 4: TfL Group – net cost of operations 2015/16 to 2024/25 (2019 Business Plan) 33 Figure 5: Impact of the coronavirus pandemic on demand levels across TfL services 35 Figure 6: Bus service operation costs per actual revenue vehicle hour 55 Figure 7: Indicative profile of zero emission bus transition programme 56 Figure 8: Indicative profile of zero emission bus transition programme – alternative delivery 57 Figure 9: London Underground & DLR Recovery ratio 2018/19: international comparison 60 Figure 10: London Overground Recovery ratio 2018/19: international comparison 60 Figure 11: London Overground cost per revenue train km 63 Figure 12: Lost customer hours attributed to Rail defects by Line and Year 63 Figure 13: Operating Income and Asset Value Growth in the Housing Growth Plan: 68 Figure 14: Homes delivery from project start date 69 Figure 15: Net and Cumulative Net Capital Cost of Housing Growth Plan 69 Figure 16: London Underground and bus proportion of variable costs over different time horizons 78 Figure 17: Comparison of TfL’s funding arrangements to other urban transport authorities 103 Tables Table 1: TfL Financial Sustainability Plan scenarios 12 Table 2: TfL Group position for Decarbonise by 2030 13 Table 3: TfL's proposals for achieving financial sustainability 18 Table 4: TfL Group – net cost of operations (2019 Business Plan) 33 Table 5: Impact on 2020/21 revenue compared to the expectations under the 2020/21 Budget 36 Table 6: Forecast of demand changes for rail and bus 37 Table 7: Comparison of operating income to 2029/30 39 Table 8: Long term capital planning scenarios 41 Table 9: Financial sustainability under Decarbonise by 2030 scenario 45 Table 10:

London, 2012 and beyond Maps of key Games schemes London 2012 Games Projects and funding Investment Programme summaries