Sadiq Khan has threatened Grant Shapps that there will be “serious consequences” for the tube and buses if another row breaks out over a bailout for Transport for London (TfL).
London mayor said tube, train and bus services should be placed in “managed decline” because of the government’s refusal to hand him billions of pounds in funding.
Transport Minister Shapps accused Mr Khan and TfL of repeatedly failing to answer questions about how the money will be spent.
City Hall and Westminster officials have been engaged in talks in recent weeks to broker a multi-year deal that would put TfL’s funding on a firmer footing.
But as the two sides cannot agree on the terms, a short-term extension until July 28 has now been imposed to prevent the transport authority from running out of money within days.
Mr Shapps said: “We have supported London transport with: over £5 billion in funding† Despite already agreeing to an extension, TfL and the mayor have still not provided vital information that we have repeatedly asked for. In light of this, we have agreed to another extension.”
Mr Khan said: “This short extension is only necessary because the government has still not put forward any proposals for discussion on the long-term funding London needs. I am increasingly concerned that we cannot wait any longer without serious consequences.
“This is a £10 billion transport authority that is crucial to supporting jobs and economic growth. Without a long-term financing deal, TfL will have to prepare for further painful cuts to London’s transport network – the ‘managed decline’ scenario.