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24/11/2024
Sunday
THIS DAY IN HISTORY:
24 November 
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
24 November
1970 The United States and the USSR ratified the nuclear non-proliferation treaty.
1970 The Central Committee of CPSU restored the national autonomy of the Kalmyks, Karachais, Balkars, Chechens and Ingush.
1970 Charles Darwin published The Origin of Species - the first edition was sold out in a day.
London public transport is on the verge of bankruptcy
TfL company, which operates public transport in the British capital, may go bankrupt if it does not receive financial support from the government. This statement was made on February 19 by the mayor of London, Sadiq Khan.
The pandemic has led to a significant reduction in passenger traffic. Therefore, the head of the city is looking for ways to obtain long-term funding from the state, since without it Trasport for London (TfL) company risks to go bankrupt within a few days.
According to representatives of the London City Hall, the economic condition of the capital and the state as a whole depends on TfL's investments from the authorities. If the company goes bankrupt, the victims will be about 43,000 people living outside London and forced to get to work in the city by public transport. This will inevitably hit not only jobs, but TfL's business chain as well.
According to a TfL spokesman, the recovery of the UK from the pandemic is impossible without the revival of economic life in London. This, in turn, involves the restoration of the transport arteries of the capital. Currently, the number of people using public transport services remains very small. For example, the number of passengers in the London Underground is only 59% of the pre-pandemic level, and about 75% travel by bus compared to the level of the beginning of 2020.
The pandemic has led to a significant reduction in passenger traffic. Therefore, the head of the city is looking for ways to obtain long-term funding from the state, since without it Trasport for London (TfL) company risks to go bankrupt within a few days.
The government has previously provided TfL with financial support and allocated £4.5bn.
However, last Friday, the state assistance ended, and its extension was not agreed upon. According to The Guardian, Sadiq Khan was forced to spend almost the whole Saturday on negotiations, which have not yet ended.According to representatives of the London City Hall, the economic condition of the capital and the state as a whole depends on TfL's investments from the authorities. If the company goes bankrupt, the victims will be about 43,000 people living outside London and forced to get to work in the city by public transport. This will inevitably hit not only jobs, but TfL's business chain as well.
The company itself says the organization could enter a ‘managed downturn’ period if the long-term financial support from the government is delayed.
One option would be to issue a document complying with the article 114 of the Local Government Finance Act of 1988. In fact, by doing so, the company will declare itself insolvent.According to a TfL spokesman, the recovery of the UK from the pandemic is impossible without the revival of economic life in London. This, in turn, involves the restoration of the transport arteries of the capital. Currently, the number of people using public transport services remains very small. For example, the number of passengers in the London Underground is only 59% of the pre-pandemic level, and about 75% travel by bus compared to the level of the beginning of 2020.
The UK Department of Transport recalled that it had already allocated billions of pounds in investments to support infrastructure.
It is planned that financial assistance will also be allocated for the period of 2024-2025. At the same time, the authorities do not relieve the mayor of responsibility for the implementation of measures that should ensure the financial stability of TfL without causing damages to taxpayers. 22.02.2022
