(Bloomberg) -- Transport for London said it agreed with the U.K. government on roughly 1.8 billion pounds ($2.3 billion) of emergency funding as the prolonged impact of the coronavirus pandemic continues to hurt revenue.
The deal with the Department for Transport runs to the end of the fiscal year in March and is subject to the passenger revenue levels assumed in TfL's revised budget, and could increase if actual revenue is lower.
London Mayory Sadiq Khan said in a statement that the agreement was “not ideal” and that Prime Minister Boris Johnson's government was “determined to punish the city” for its efforts to tackle the coronavirus.
“These negotiations with the government have been an appalling and totally unnecessary distraction at a time when every ounce of attention should have been focused on trying to slow the spread of Covid-19 and protecting jobs,” he said in a statement.
TfL's revenue fell 90% at the start of the first Covid-19 lockdown in March. England will start a second lockdown this week and the government has been encouraging those who can work from home to do so since September.
Khan said he succeeded in getting the government to drop a condition that a $15 pound daily congestion charge for car drivers would be extended to more parts of the city, a move that would have affected about 4 million people, Khan said.
As part of the funding deal, Khan agreed to raise extra money, which could involve a “modest” increase in the council tax that residents have to pay on their homes, he said.
Read more: London Businesses Seek Tube Bailout as Virus Wipes Out Revenue
Separate discussions on additional costs related to the delayed Crossrail project are progressing in parallel.
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