Investment by Transport for London (TfL) through its UK-wide supply chain continues to support growth and opportunities right across the UK, a new independent report has shown.
The report shows how investment by TfL into London’s public transport network has huge benefits for its UK-wide supply chain. This in turn delivers wider benefits for the economy of the local areas where the suppliers are located, supporting jobs and economic growth across the country.
TfL’s extensive supply chain delivers everything from new zero-emission buses in Falkirk and Ballymena to signage for the TfL network made by suppliers in East Sussex and the Isle of Wight, as well as in London. Across the past two years (22/23 and 23/24), TfL spent over £12bn with more than 3,000 UK suppliers. This expenditure supported 100,000 jobs per year and has helped generate over £11bn in Gross Value Added (GVA) to the UK economy over the period.
Around two thirds of TfL suppliers were based outside London, whilst nearly a third of TfL’s overall spend and resulting economic benefit was felt outside of London. It has also helped drive activity in new and emerging sectors, with 30 per cent of TfL suppliers operating in low carbon industries and 10 per cent of TfL’s supply chain in cutting edge technology and data businesses. Overall, 62 per cent of TfL’s suppliers were small to medium enterprises (SMEs).
A key example of how TfL’s supply chain is delivering for London is at the Rail Engineering Workshop in Acton, which has been a centre of excellence for rail maintenance and engineering since 1922. The Workshop continues to play a vital role in keeping the network running – including a £500m overhaul of the Central line trains to makes them more reliable, more accessible, improve customer information and install CCTV. More than 95 per cent of its suppliers are based outside of London. For every job directly created through supply chain expenditure from the Workshop, one additional job is supported in the rest of the supply chain. As well as investment in the public transport network, TfL is supporting economic growth through Places for London, its wholly owned property subsidiary. Places for London has plans to build 20,000 homes for Londoners, with work already started on sites across London which are delivering 4,300 homes, of which more than 1,300 homes are complete. 54 per cent of these are affordable homes.
Since it was formed in 2000, TfL has delivered a huge range of transport improvements for London, which have helped to unlock new housing, made journeys more accessible and comfortable for customers, and supported new jobs and economic growth. These include delivering network extensions like the Elizabeth line and extending the DLR to Woolwich and Stratford International, improving suburban rail services via London Overground, as well as introducing new Tube trains and buses, more convenient ticketing and making more stations accessible for all.
The report reiterates how sustained investment in TfL can drive economic growth, within London as well as across the UK. Government investment in London’s transport in the past decade has been highly constrained, short term, and below the level needed making it difficult for TfL to maintain and renew its infrastructure effectively and contribute to growth. In some cases, including the Bakerloo and Central line trains and road structures like the A40 Westway and A406 Brent Cross flyover, this has led to disruptions in services and affected customers' experiences.
The Government has recognised the need to work together to secure longer term financial certainty for TfL, which has been highlighted as essential for many years. Securing long-term funding certainty would allow TfL to continue to deliver vital improvements to London’s transport network, supporting the government’s programme of growth and opportunities across the UK.
In advance of the upcoming spending review, TfL has identified a set of future projects and programmes that could fuel the homes, jobs and wider economic benefits needed to deliver the government’s growth mission. These include the much-needed maintenance and renewal of existing TfL assets, necessary to provide a good reliable public transport network as well as new projects such as the DLR extension to Thamesmead, the Bakerloo line extension and the West London Orbital. These projects could collectively deliver tens of thousands of new jobs and homes across London, as well as across the wider UK through investment in TfL’s supply chain.
Positive discussions continue to take place between TfL, the Mayor and Government to secure this investment so that London’s transport system can support growth in the capital and across the country.
The Mayor of London, Sadiq Khan, said: “This report demonstrates TfL’s instrumental role in creating growth and good jobs across the UK in engineering, manufacturing, and technology across the UK. Piccadilly line trains are being produced in Goole, Elizabeth line trains in Derby, and zero-emission buses in Ballymena, Falkirk, and Yorkshire.
“I am working with Government to ensure that London’s transport network can continue to support new homes, economic growth, and productivity in London and nationwide. I look forward to working constructively to secure a long-term multi-year funding deal for TfL, which is essential to retain London’s status as a global city that supports inward investment for the UK economy.”
Andy Lord, London’s Transport Commissioner said: “London has long been the national engine of growth and this latest report showcases just how powerful and economically important TfL's supply chain is, and that investing in London's transport network supports growth and opportunities right across the UK.
"We are very grateful for the financial investment we have received from the Mayor and Government towards our ambitious capital programme. With long-term certainty, we can drive investment more efficiently and dynamically, allowing us to take advantage of opportunities. It would allow us to put in place transport services such as new trains, better signalling and network extensions that are crucial to unlocking developments across London and support the Governments economic and social goals across the UK.
“Positive discussions continue to take place between TfL, the Mayor and Government on securing this but the sooner there is certainty, the quicker we can seize the opportunities for growth and support the wider UK economy."
Image credit: TfL
