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Does the London Tube make a profit?

How does Transport for London generate profits? TfL does not generate profit. Any income is reinvested in improving the transport network.



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We are committed to reducing costs and reinvesting all our income to run and improve services. For every pound we receive, around 80% is spent on the everyday running costs of the network and around 20% on renewing and improving it for the future.

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Transport for London (TfL) is a not-for-profit organisation. Our purpose is to keep London working, growing and to make life in London better.

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The current operator, London Underground Limited (LUL), is a wholly owned subsidiary of Transport for London (TfL), the statutory corporation responsible for the transport network in London.

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'Transport for London, which includes London Underground, doesn't make a profit,' he says. 'We reinvest all our income in running and improving transport in London.

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Important as this central government contribution has been to the project, it needs to be put in context: pandemic years apart, London contributes a tax surplus equivalent to two whole Crossrails every year. So we can justifiably say that London has paid for the new line.

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256. Paragraph 1 of Schedule 10 provides that TfL is not to be regarded as the servant or agent of the Crown or as enjoying any status, immunity or privilege of the Crown and its staff and property are not to be regarded as civil servants or property of the Crown.

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Metropolitan line Opened in 1863, The Metropolitan Railway between Paddington and Farringdon was the first, urban, underground railway in the world. An extension from Baker Street to Swiss Cottage in 1868, however, put an end to this claim to fame.

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TfL lost 95% of its fares income when the pandemic hit, and while passenger numbers on the Tube have recovered to roughly 65% of normal use, the transport body continues to struggle because “many commuters have not returned to a five-day week while there are few international tourists”, said the Standard.

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TfL's finances were wrecked by the coronavirus pandemic, with its budget mostly dependent on tube fare revenue. Ridership sank to 4% of normal levels in 2020 and has only recovered to around 70% of 2019 weekday levels.

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