Congestion charge shortfall - Lib Dems criticise 'disastrous' financial planning by TfL

2.30.00pm BST (GMT +0100) Thu 12th Jun 2003

Transport for London's financial planning was today described as 'disastrous' after they announced a drastically reduced revenue forecast for the congestion charging scheme.

The scheme had been so successful in deterring motorists - 40 per cent fewer cars were entering the charging zone than predicted – that the predicted income of £130m had been slashed by half.

Lynne Featherstone, Liberal Democrat assembly member and chair of the Assembly's transport committee, said: "The reduction in congestion is fabulous, but TfL's financial planning is disastrous."

"This is a significant reduction on TfL's earlier forecasts. Although it is good news that a greater number of drivers than expected have been deterred from entering central London, I am greatly concerned that TfL got its numbers so wrong," said Ms Featherstone.

"TfL can't seem to do its sums – their forecasts for bus capacity were also out. What will be next?"

"And what will Londoners miss out on as a result of TfL's inability to add up? The Mayor had been banking on this revenue to finance other transport schemes, which could now be in jeopardy."

"I am calling for an independent audit of TfL's figures to ensure the congestion charge is being properly monitored."

Because of the shortfall, the Mayor will be forced to make cutbacks in transport projects. Sally Hamwee, Lib Dem chair of the Assembly's budget committee, urged the Mayor to come up with options for dealing with the funding gaps, and expressed concern that he had not already done so.

Sally Hamwee said:

"I am extremely alarmed. What if the government fails to give the money to the Mayor after he goes cap in hand? We want real assurances from the Mayor and TfL that he is planning now to meet the shortfall, and not just relying on central Government. We will welcome more Government investment, but without a Plan B, it is London's transport that could suffer."