£70MILLION PROJECTED OVERSPEND IN TRANSPORT FOR LONDON BUDGET

12.01.00am GMT Thu 6th Jan 2005

New figures uncovered today by the London Assembly Liberal Democrats show that, despite the fare increases introduced by Mayor Livingstone earlier this week, Transport for London is set to be £70million over budget for the financial year ending in April 2005.

The figures, revealed in documents to be discussed by the Budget Committee later today, reveal that despite TfL expected to generate £52million extra in income, they will overspend by £122million.

The Lib Dems will say later today that with fare dodging exceeding £80million a year, a clampdown of fare dodging would lessen the amount overspent or could reduce the need for fares to rise.

Liberal Democrat Transport Spokesperson, Lynne Featherstone, said:-

"Serious questions must be asked as to why Transport for London are set to overshoot their budget by £70million. A doubling of fare dodging fines, combined with a clampdown on those avoiding paying for a ticket, would significantly reduce the need for Transport for London to overspend by so much.

"Much of this overspending comes from administration and staff costs. The Mayor must order an urgent review into the amount spent on bureaucracy throughout Transport for London.

"Millions of pounds is lost each year to people who are breaking the law. The failure to tackle fare-dodging hits the pockets of law-abiding commuters who pay extra fare increases. Cracking down on fare evasion would crack down on fare rises and could increase investment into London's transport network.

"The Mayor must look at dramatically increasing the penalty charge to deter fare dodgers getting away scot-free from paying for a ticket. It is time that fare dodgers received punishment that fitted the crime."

ENDS

The Functional Bodies' Quarterly Budget & Performance Monitoring Report - April to September 2004 will be discussed at City Hall by the Budget Committee on Thursday 6th January 2005.

Details can be found at:-

http://www.london.gov.uk/assembly/budgmtgs/2005/budjan06/budjan06item06Q2.pdf

with the TfL overspend found on page 28 (Appendix C)