Investing in the network that powers London’s economy

Securing long-term investment in London’s transport network and giving London greater control over the revenues it generates were central themes when Deputy Mayor for Transport Seb Dance joined BusinessLDN’s latest Meet the Deputy Mayor event, kindly sponsored by Arriva UK Bus, part of the Arriva Group. In conversation with our Chief Executive, John Dickie, the discussion focused on how funding certainty, fiscal devolution and infrastructure investment can support London’s long-term prosperity. 

Opening the session, John highlighted the vital role transport plays in connecting people to jobs, businesses to customers and communities to opportunity. He argued that a lack of long-term investment remains one of the biggest constraints on London’s growth, while greater devolution presents an opportunity to unlock the infrastructure the capital needs to continue succeeding. 

Members also heard from Arriva UK Bus Managing Director Martijn Gilbert, who reflected on Arriva’s proud history of connecting Londoners with jobs, education, friends and family for almost half a century. Over that time, Arriva London has grown into a major presence in the capital, now operating more than 1,400 buses and employing over 4,500 people.

Martijn set out Arriva’s commitment to building on this legacy through continued investment in a more sustainable fleet and depot electrification, including a further 307 new zero-emission vehicles entering service in London as part of the company’s £340 million UK-wide fleet renewal programme. He also pointed to Arriva’s strong track record in winning and retaining routes, underpinned by a close working partnership with Transport for London (TfL).

A recurring theme throughout the discussion was the close relationship between transport investment and economic growth. The Deputy Mayor noted that TfL remains unusually reliant on fare income, with around 75% of its revenue coming from passengers, significantly more than many comparable transport authorities around the world. Following the sharp decline in passenger numbers during the pandemic and a period of short-term funding settlements, he said the Government’s longer-term capital settlement provides greater certainty and allows TfL to plan and deliver investment more effectively. 

The conversation repeatedly returned to devolution and the case for giving London greater control over the revenues it generates. Seb highlighted that £4 in every £10 of Government tax revenue comes from London, while 55% of every pound spent by TfL is spent outside London, demonstrating the wider national benefits of investment in London’s transport network. He also noted that TfL is one of only two transport authorities globally to generate an operating surplus. Against that backdrop, he argued that greater fiscal devolution would help London plan over the long term and unlock future investment. 

That argument was closely linked to the infrastructure projects needed to support the capital’s future growth. Members discussed the potential of schemes including the DLR extension to Thamesmead, the West London Orbital and the Bakerloo Line Extension, all of which could improve connectivity and support regeneration. The Deputy Mayor also pointed to the Elizabeth line as evidence of London’s ability to fund major infrastructure, noting that around 90% of the project’s funding came from London itself and that Crossrail is already delivering significant economic benefits. 

Alongside future infrastructure, members discussed how London’s existing network can better serve the city’s needs. Around five million passenger journeys are made by bus every day, yet slower journey times caused by congestion remain a major challenge. Despite some of the lowest bus fares in Western Europe, ridership has fallen in recent years, underlining the importance of improving reliability and making bus travel a more attractive option. The Deputy Mayor highlighted measures including lane rental schemes and new traffic management technology that could improve journey times, increase passenger numbers and strengthen fare revenue.

The discussion also explored how travel patterns are evolving across the city. As activity becomes less focused on Central London, TfL is placing greater emphasis on improving orbital connections between town centres and outer London destinations. Initiatives such as the Superloop were highlighted as examples of how the network is adapting to changing demand. The Deputy Mayor pointed to Hackney, where around 80% of journeys are already made by public or active transport, as evidence of what is possible when high-quality alternatives to car travel are available.

Looking ahead, members examined the opportunities and challenges presented by autonomous vehicles, freight and logistics, and the transition to net zero. The Deputy Mayor stressed that innovation must support the Mayor’s Transport Strategy, while freight consolidation, greater use of the Thames and expanded rail freight all have a role to play in reducing pressure on London’s roads. 

The scale of the decarbonisation challenge also featured prominently. The Deputy Mayor highlighted the Mayor’s ambition for 80% of journeys to be made by public or active transport by 2041, up from 64% today, alongside the continued growth of London’s cycling network to 440km. He noted that a fully zero-emission bus fleet would halve TfL’s operational emissions, underlining the significant contribution that cleaner public transport can make to the capital’s net-zero ambitions. Seb also pointed to the importance of expanding EV charging infrastructure, with London expected to need between 43,000 and 51,000 public charging devices by 2030, while noting that grid capacity remains a significant long-term constraint. 

While major projects and emerging technologies attracted considerable attention, the Deputy Mayor was clear that renewing London’s existing transport network remains TfL’s immediate priority. Investment in ageing trains, depots, lifts, escalators and other assets will be essential to improving reliability and resilience across the network. He highlighted the Central Line Improvement Programme, which will deliver fully refurbished rolling stock, with passengers expected to see improvements in the coming months. Seb also pointed to depot upgrades and enhanced CCTV as examples of how targeted investment is helping tackle issues such as graffiti, while improving the overall passenger experience.

Following the event, Martijn Gilbert, Managing Director of Arriva UK Bus, said: ​“It was a pleasure to welcome the Deputy Mayor for Transport, Seb Dance, and BusinessLDN to Arriva’s London office for a timely discussion on the capital’s transport future. Having worked alongside TfL for over four decades, we understand the vital role that collaboration between private operators and local government plays in driving investment and encouraging more people to leave their cars at home and travel sustainably on public transport. Arriva is committed to working closely with City Hall and TfL to help deliver the Mayor’s ambitions for London’s network, recognising that a thriving public transport system will remain central to delivering the successful future that Londoners deserve.”