London mayor swings axe to cut flab at TfL

London mayor Sadiq Khan is planning a major cost-cutting programme at Transport for London in the biggest overhaul in the body’s history.

The major cost-cutting programme will see a wave of job cuts through management to generate savings of £800m a year.

He is also aiming to deliver big savings renegotiating contracts and getting more affordable deals from suppliers.

The savings will help to pay for his pledged fare freeze while maintaining ambitious investment plans in the Capital.

Every area of TfL’s business is being redesigned with value for money at its core, from IT projects, to procurement, to project planning and delivery.

Sadiq Khan, Mayor of London, said:  “The new TfL Business Plan being presented today sets out an ambitious and wide-reaching programme that allows us to both freeze TfL fares, and invest record amounts modernising London’s transport’s infrastructure.

“The previous Mayor refused to do it, but in reorganising a flabby TfL and finding major efficiency savings within the organisation, we’re securing this record investment without burdening Londoners with further hikes in TfL fares.”

Savings plan

• £2bn from a new operating model, reducing management layers, merging functions such as engineering to eliminate duplication. TfL has already reduced spend on IT projects, saving £70m, and implemented an exit programme that has seen 49 senior managers leave the organisation saving £40m over the next five years, as well as reducing spend on non-permanent labour and consultancy, saving £50m a year.

• £2bn through renegotiating and bringing together the management of contracts, getting more affordable deals from suppliers, and renewing and enhancing assets in more cost effective ways. TfL has  already identified savings of £80m per year over the next five years by moving Tube maintenance in-house.

• TfL aims to raise non-fares income by fully realising its enormous advertising estate and maximising its land and retail estate in support of the Mayor’s housing strategy. TfL aims to raise £3.4bn for reinvestment in the transport network by 2023 through property development, advertising and consultancy opportunities. This work includes putting spare land to better use by building 10,000 homes.

The proposed Business Plan also sets out spending on cycle routes, London Underground and new river crossings.

A total of £2.5bn will be invested to get more people cycling and walking, and to improve public safety and air quality.

from Construction Enquirer http://www.constructionenquirer.com/2016/12/08/london-mayor-swings-axe-to-cut-flab-at-tfl/

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