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Lost City Jobs Punch Hole In In London's Tube Budget

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http://www.guardian.co.uk/politics/2009/se...ondon-transport

Boris Johnson considers steep fare rises to solve multibillion-pound shortfall in upgrade scheme

The loss of thousands of City jobs has gouged a hole in London's transport budget, forcing the mayor, Boris Johnson, to consider inflation-busting fare rises as he grapples with a multibillion-pound funding gap in a tube upgrade programme.

The London Underground network, which accounts for more than half (58%) of the mayor's fare income, suffered a 6.4% decline in passenger journeys in August as fewer commuters crammed into one of the world's busiest metro systems. Peter Hendy, London's transport commissioner, told the Observer that the capital's financial districts had seen the biggest falls in tube patronage, with the network carrying nearly 200,000 fewer journeys per day after mass sackings in the Square Mile and Canary Wharf.

However, any relief at less crowded tube carriages will be tempered by a looming budget crisis at the mayor's transport authority, Transport for London (TfL). TfL's budget, described by one observer as "already very tight", requires a 7.4% increase in fare income this year as well as a 3.5% increase in passenger journeys.

Hendy admitted that TfL would now miss revenue targets, with long-term consequences for TfL's finances as the organisation is forced to set pessimistic expectations for passenger numbers. "Revenue is not where we expect it to be in this year's budget. A decline in revenues now will also have a budgetary effect in the years to come," he said.

Johnson paved the way for large fare rises this month when he warned of a "massive black hole" in the capital's transport budget. TfL's long-term plan, now being hastily rewritten, budgets for a 6.2% increase in bus and tube fare income from 2010 to 2011. However, ticket prices will have to increase by more than 6% next year if passenger numbers remain negative.

Hendy said TfL would continue to seek reductions in costs as part of a £2.4bn savings programme, adding: "There is no point in me even pretending to the mayor that fares have got to take some sort of account of this without him asking, 'Where are the savings that allow me to say TfL is efficient?'"

Tony Travers, director of the Greater London Group at the London School of Economics, said the widening gap in TfL's budget would put pressure on fares. "This is widening the gap between what they needed to raise and what they were going to spend. That will put even greater pressure on fares because, along with radical efficiency savings, that is the only way that TfL can make up the difference."

The problems of a high cost economy.

Perhaps Mystic Merv should put up interest rates to counter these inflation busting increases.

Won't higher fares discourage even more people from using the Tube, effectively making the fare increases pointless and further damaging revenues?

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http://www.guardian.co.uk/politics/2009/se...ondon-transport

The problems of a high cost economy.

Perhaps Mystic Merv should put up interest rates to counter these inflation busting increases.

Won't higher fares discourage even more people from using the Tube, effectively making the fare increases pointless and further damaging revenues?

He who Laffs last...

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Doubt if Mustic Moron uses the tube, just think how horrendous it would be if tube fares actually went down to reflect feed through of lower salaries to match lower living costs - it would be a nightmare.

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Of course Boris could scrap free travel for under-16s and free us from the cost of subsidising the little b***ers.

Edited by dinker

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Interesting manifesto: "If elected we're not going to do a ******ing thing! It's bad enough as it is."

Could have legs.

p-o-p

my grandpappy used to say to me..." If it ain't broke sun, dont fix it"

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Of corse Boris could scrap free travel for under-16s and free us from the cost of subsidising the little b***ers.

Didn't he do that anyway? Basically Ken turned the bus/tube system into a mobile disco/youth club.

Ban everyone under 18, in addition to anyone with an ipod, mp3player, walkman, blackberry curve, and mobile phone would make the system tolerable again.

Edited by SavingForAShed

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Didn't he do that anyway? Basically Ken turned the bus/tube system into a mobile disco/youth club.

Ban everyone under 18, in addition to anyone with an ipod, mp3player, walkman, blackberry curve, and mobile phone would make the system tolerable again.

The metro is fine, but have you ever tried to read a broad sheet and turn the pages? ;)

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The metro is fine, but have you ever tried to read a broad sheet and turn the pages? ;)

People of a certain age learnt how to fold papers to enable this. You can still see the crossword and all the clues, and turn the pages.

p-o-p

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The system is bursting in central London. The outer bits are better, but it's awful at peak times in the middle.

Thankfully I more or less sit in the same seat each day as I am near the end of the line and can choose, but I pity those even a little closer in, living in an "up and coming" ghetto and having to stand every day.

The price feels mad, but I am spending 25p per mile of journey taken, so even though I resent spending 40 quid a week, it's not really bad value. I can't believe I just said this and will go and have my tea.

TFH

Edited by Tin Foil Hat

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Unintended consequences. Not all of the falling numbers are due to job losses in the City. Back in 2007, TFL were panicking about rising passenger numbers and unable to match demand. BoJo won his campaign for Mayor last year largely on being pictured cycling everywhere, blonde mop awry (which, being cynically minded, his publicists urged him NOT to wear a helmet because he came across as more iconic). Campaigns urged us to consider other transport possibilities (walk, cycle).

Now a downturn has occurred and many people have lost their jobs. Many other people are still employed but with frozen pay, loss of bonus (I mean normal ones, not the ridiculous City ones) and have had to look at several cuts, including the cost of transport.

OH has saved £27 a week by taking the bus instead of the tube into C London and enjoys a seat. I cycle pretty much everywhere and save around £30 a week. When I do take public transport, I refuse to pay £4.50 for a single tube journey when I can pay £1 for a much more pleasant bus journey. Instead of travelling into Victoria, I get off at Vauxhall and walk over the bridge, which saves me a cool £1.40 on every journey.

Putting tube fares up is going to decrease passenger numbers and create a bigger black hole.

And where did all the money go when the tubes were full to bursting? We didn't have a decrease in fares.

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maybe the real reason that people have not been travelling is the fear of swine flu.

i know its a constant worry for me, and i dont really go out, just the odd flight to the US.

travelling each day on the tube must feel a bit like playing Russian Ruolette.

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maybe the real reason that people have not been travelling is the fear of swine flu.

i know its a constant worry for me, and i dont really go out, just the odd flight to the US.

travelling each day on the tube must feel a bit like playing Russian Ruolette.

You are joking surely..... :lol:

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Since I started to cycle I have saved roughly £2500. I wonder if there is a graph to represent the rise in cycling with a drop in tube journeys. f0cking hate the tube. I would literally rather dice with death on the roads.

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Since I started to cycle I have saved roughly £2500. I wonder if there is a graph to represent the rise in cycling with a drop in tube journeys. f0cking hate the tube. I would literally rather dice with death on the roads.

Absolutely!

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http://www.guardian.co.uk/politics/2009/se...ondon-transport

The problems of a high cost economy.

Perhaps Mystic Merv should put up interest rates to counter these inflation busting increases.

Won't higher fares discourage even more people from using the Tube, effectively making the fare increases pointless and further damaging revenues?

Demand is dropping so we need to raise the price !!!

FFS Boris I thought the Tories were supposed to understand how the market works.

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course, Boris could STOP UPGRADING.. STOP spending.

The 6.4% drop in passengers is probably related to the 5/7 days that many of the lines are actually open these days.

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Since I started to cycle I have saved roughly £2500. I wonder if there is a graph to represent the rise in cycling with a drop in tube journeys. f0cking hate the tube. I would literally rather dice with death on the roads.

Saw lots of bikes this evening, swarms of them. This is fantastic and cycling in London is starting to get to a real critical mass stage. I felt left out being in my car, but I didn't feel like cycling from Romford to Islington and back again!

If I lived further in again, I'd cycle everywhere.

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