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London Underground after the PPP, 2007-

Published Wednesday, January 18, 2012

This note looks at the management of London Underground since 2007, covering the collapse of the Public Private Partnership (PPP) and the transfer of control of the Underground to Transport for London (TfL).

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This note looks at the management of London Underground since 2007, covering the collapse of the Public Private Partnership (PPP) and the transfer of control of the Underground to Transport for London (TfL).

By the late 1990s there was general agreement that it should be a priority to secure investment in London Underground in order to improve services and bring the network up to modern standards. This could only be achieved with a stable funding regime to allow investment to be planned ahead.

While the previous Conservative Government announced its intention to privatise the Underground, the Labour Government that took office in 1997 opted instead for a PPP. In taking this decision it faced opposition from a number of quarters, including unions and safety campaigners and the first Mayor of London, Ken Livingstone. Mr Livingstone and his Transport Commissioner, Bob Kiley, took the government to court over the decision and championed an alternative method of raising money, via the issue of bonds secured against future fare revenues from London. This was rejected by the Treasury.

Mayor Livingstone was ultimately unsuccessful in his challenge and the PPP went ahead in 2003. The primary legislation for the PPP is contained in Part IV, Chapter VII of the Greater London Authority Act 1999, sections 210-239 and Schedules 14 and 15.

These matters are dealt with separately in HC Library note SN1307, available on the Railways Topical Page of the Parliament website.

Plagued by problems, the PPP collapsed in 2010 when Transport for London bought out the private companies in the Tube Lines consortia; this followed the administration of Metronet in 2007.

Commons Briefing papers SN01746

Author: Louise Butcher

Topic: Railways

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