The Government and Transport for London (TfL) have today (18 December) reached an agreement for a £250m funding injection for 2024, half of the £500m the Mayor of London requested.

The money is specifically earmarked for TfL's ongoing capital investment programme and will not be used to help fund day-to-day operations. However, the shortfall from investment could mean some planned upgrades to the network, such as updating the Bakerloo line, are likely to be scrapped.

London Mayor Sadiq Khan said he was "relieved" that the funds had been agreed upon, but added that his wish was to see a "decent long-term funding settlement".

Rail Minister Huw Merriman was confident that the deal would benefit Londoners and create jobs: "It is fair for Londoners and taxpayers, underpinning projects that will support hundreds of skilled manufacturing jobs in our vital rail sector."

Part of the package is expected to go towards increasing the fleet of trains on the Piccadilly line, a scheme TfL expects to support 2,700 jobs across the country.

The funding is the latest in nearly £6.4bn already provided by central government to TfL since 2020 after COVID saw passenger numbers fall by over 90%.

Andy Lord, TfL's commissioner, said a "huge effort" had been underway since to repair the financial woes of the organisation.

He added that "TfL is now on track to be financially sustainable in terms of its day-to-day operations" but that they that they face a "continuing shortfall in funding".