(Bloomberg) -- London's subway network secured a funding extension from the U.K. government as a slump in passenger numbers triggered by the coronavirus crisis compounds an already perilous financial situation.
Support that was due to expire Friday will continue through Feb. 4, Transport for London said in a statement, adding that it's grateful for the lifeline but that a more enduring settlement still needs to be negotiated.
Andy Byford, the city's transport commissioner, said it's critical discussions continue “so that we can agree the sustained long-term government funding that is vital for the coming years if a period of managed decline of London's transport network is to be avoided.”
Byford said that London Mayor Sadiq Khan has set out a range of proposals that will help support TfL's financial sustainability.
Khan had warned that without a funding extension services on the Tube, as the subway is known, would need be reduced by almost 10%, while bus provision could be cut by one-fifth. He said Wednesday as talks faltered that Londoners might have to pay an extra 20 pounds ($26) a year in tax to support TfL.
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