Here’s why fewer Londoners are taking the tube – and why it poses a threat to the TfL’s finances

Where did everybody go? Image: Mattspinner/Flickr/creative common.

For the first time since 2008, the number of people using the world-famous London Underground – locally known as “the tube” – has fallen significantly. After over two decades of long-term growth, passenger numbers are down 2 per cent. Bus use also peaked in 2014, and has been falling steadily each year. Simply put, fewer people in London are using public transport – and this means fewer ticket sales. This has created a funding gap that puts plans for improvements and upgrades in serious jeopardy.

Since the national government cut its £700m a year grant, London’s transport agency, Transport for London (TfL), has been banking on ticket sales to fund the capital’s transport system. But this year, TfL has had to revise its income from tickets sales down by £240m.

This spells trouble for the agency, which plans for ticket sales to generate up to £6.2bn, or 62 per cent, of the £10.2bn budget for 2022-23 – a big increase from today’s £4.6bn, or 45 per cent of this year’s budget. Since London Mayor Sadiq Khan is committed to freezing single fares, additional growth will need to come from more passengers.

This is, in some ways, a reasonable expectation: population and employment - the key drivers of transport demand - are still growing in London. TfL points towards economic factors, including the uncertainty of Brexit, to explain the downturn in demand for public transport. But this year’s lower passenger numbers point instead towards lifestyle changes, which are affecting when and how people choose to travel.

London’s missing passengers

Travel surveys show that the average Londoner made only 2.2 trips (across all transport modes) a day in 2016-17, down 20 per cent from 2006-7. So despite population growth, transport demand has not risen as much as expected. This decline is mirrored across England: between 2002 and 2016 a 9 per cent drop in trips across all modes was recorded.

Passenger numbers on London Underground. Image: TfL.

Flexible and remote working practices are contributing to this trend: instead of commuting to work five days, the new normal for Londoners is now four. Over the past decade, commuting trips have dropped by 14.2 per cent.

At the same time, the cost of travel has been increasing. While single fares on the bus and the tube cost approximately the same in real terms between 2000 and 2012, they have increased 5 per cent and 3 per cent respectively since then. The cost of season tickets is up even more; 8 per cent on the bus and 6 per cent on the London Underground in real terms since 2012.

Greater transport costs mean less disposable income, which explains why Londoners are making fewer leisure and shopping trips, instead opting to stay home and shop online. Meanwhile, London’s changing mix of traffic suggests that personal trips are being substituted with deliveries. This shifts the burden from the public transport network to the road network. Across London, light goods vans are making up a growing proportion of traffic: accounting for 14 per cent of traffic in 2016, up from 10 per cent in 1993 and 11 per cent in 2000.


Trouble for TfL

To avoid a major shortfall, TfL will need look at new ways to fund transport. One solution might be to reform London’s congestion charge. Currently, the congestion charge covers less than 1.5 per cent of the city, applies only between 7am and 6pm, consists of a simple, daily flat rate, and exempts private hire vehicles - your Uber drivers and minicabs.

Over the past four years, there has been a 75 per cent increase in the number of registered private hire vehicles. On Friday and Saturday nights, 18,000 cars flood the streets of Central London. With New York City set to introduce a surcharge for taxis and private hire vehicles ($2.50 and $2.75 respectively), London might also want to follow suit.

A more comprehensive road pricing strategy would be an effective tool to manage traffic and generate funds for the transport system. A reformed congestion charge alongside good public transport, cycling infrastructure and public space could encourage Londoners to shift away from their cars toward travelling by public transport, walking and cycling.

TfL predicts that most of it’s revenue growth – £3.2bn over the next five years - will come from the new Elizabeth Line, which is set to start running in December 2018. By 2022-23, TfL expects passenger numbers on the Elizabeth Line to increase by 200m to 269m, and tickets sales to earn £913m. Over the same period, passenger numbers on the London Underground and bus network are forecast to rise by just 5 per cent and 3 per cent respectively.

Almost ready? Image: Department for Transport/Flickr.

The income from the Elizabeth Line is crucial to TfL balancing its books. As outgoing deputy mayor for transport, Val Shawcross, warned, delays to the Elizabeth Line opening on time are TfL’s greatest revenue risk. So as engineering challenges threaten to push back the opening date, TfL’s money worries look set to worsen.

The funding conundrum

TfL is also seeking to earn from developments on some of the 300 acres of land it owns in the city. By 2022-23, the property partnerships agreed between TfL and thirteen large property development companies in 2016 are set to generate £3.4bn of income to reinvest into London’s transport system. London Mayor Sadiq Khan is pushing for further sites to be unlocked, to generate more funds and meet his manifesto commitment to build more affordable homes for Londoners.

Khan’s manifesto pledge to freeze single fare tickets throughout his term is estimated to cost £640m. Arguably, reneging on that promise could return £640m to TfL’s purse. TfL points to national rail services where fares are higher and the reduction in passenger numbers has been greater, and argue that the fare freeze blunted the drop in passenger numbers.

The ConversationIf TfL fails to find new ways to fund its network, more cuts to upgrade and capital programmes are only a matter of time. The agency has already cut its funding for streets, cycling and public spaces in London’s boroughs, and suspended its roads renewal programme and underground capacity upgrades. TfL’s reliance on ticket sales to fund the capital’s transport system makes it very vulnerable to unexpected changes in demand. To ensure London continues to have a world-class transport system, both Khan and TfL must urgently find new sources of funding.

Nicole Badstuber, Researcher in Urban Transport Governance at the Centre for Transport Studies, UCL.

This article was originally published on The Conversation. Read the original article.

 
 
 
 

It’s time to rethink how the British railway network works

Nothing doing: commuters await a long-delayed train. Image: Getty.

The recent meltdowns on Northern and Thameslink not only left many passengers besides themselves with frustration about not being able to get to work on time, if at all. It also led to a firestorm of criticism and condemnation from politicians and media alike.

With the immediate shock of that first Monday morning of the meltdown passed, there’s a now a bigger debate about whether the way that rail services are provided for cities needs some far reaching reform. But before coming to that, the first thing to say – and as we set out in our Rail Cities UK report, launched today – is that the fundamentals for urban rail remain very strong.

Here’s why. All cities want to become denser, more dynamic places which attract the best people to the growth sectors of the economy (including the ‘flat white economy’ of media, communications and information). In order to achieve this, as well as to improve air quality, cities are also reducing space for motorised traffic in favour of space for people.

It’s very difficult to see how this can be achieved without expanding rail networks and their capacity. What’s more, if housing need is to be met without creating more sprawl and traffic congestion, then again its rail that will be key – because it opens up former rail-connected brownfield industrial sites, it extends commuting range, plus housing can be built above or around new or existing rail stations and interchanges.

In some ways there’s nothing new here. From Metroland to Docklands, successful cities have always grown with their rail networks. And to be fair, there is significant investment going into urban rail at present. Northern will get a lot better (the pacers are doomed) and both Merseyside and Tyne & Wear are getting a whole new fleet of trains for their urban rail networks.

However, much (but not all) of this investment is incremental, or replacing rolling stock on its last legs. It stops short of the wider vision for the rail cities that we need.


What would that look like in practice? There comes a point when the biggest cities need more cross-city routes, because running trains in and out of edge-of-centre termini can’t cope with the numbers. That explains the push for Crossrail 2 in London, but also the need for more cross-city capacity in cities like Birmingham (on the Snow Hill route) as well as in Manchester (on the Oxford Road to Manchester Piccadilly corridor, as well as a potential new underground route).

Tram-train technology can also help – allowing the lucky commuter that benefits to get on board at their local station and get off right outside their city centre office on main street in the city centre, rather than piling out at a Victorian railway terminal on the edge of that city centre.

Tram-trains aren’t the only tech fix available. Battery packs can extend the range of existing electric trains deeper into the “look ma, no wires” hinterlands, as well as allow trams to glide through city centres without the expensive clutter of overhead wires.

More mundane but equally useful work to increase capacity through signalling, station, track and junction work offers the opportunity to move to turn-up-and-go frequency networks with greater capacity and more reliability – networks that start to emulate the best of what comparable German rail cities already enjoy. Interlocking networks of long distance, regional express, regional, S-bahn, U-bahn, trams and buses, all under common ticketing.

But in talking about Germany and common ticketing I am now getting back to where I started around the debate on whether some fundamental change is needed on how urban rail networks are provided. Obviously there is a bigger national discussion going on about whether the current structure is just too layered, with too many costly interfaces and too fractured a chain of command. And in addition another, on whether the railway should be publicly or privately owned and operated.

But it’s been heartening to see the growing recognition that – regardless of how these debates are resolved – more devolution for urban and regional services should be part of any solution. That’s not only because fully devolved services have been out-performing comparators both operationally and in passenger satisfaction; it’s because local control rather than remote control from Whitehall will mean that the dots can be joined between rail and housing, between rail and the wider re-fashioning of city centres, and between rail and local communities (for example through repurposing stations as wider hubs for local community use, enterprises and housing). It will also allow for rail and the rest of local urban public transport networks to be part of one system, rather than be just on nodding terms as is all too often the case at present.

The crisis on Northern and Thameslink has been a miserable experience for rail users, affected cities and the rail industry. If any good has come out of it, it is that it shows how important rail is to cities, and opens up a space for some bigger thinking about what kind of rail cities we will need for the future – and how best we can make that happen.

Jonathan Bray is the Director of the Urban Transport Group which represents the transport authorities for the largest city regions. You can read the group’s full report here.