All-night London Tube 'will lose £100m'

Plans to run all-night Tube services in London will run up losses of over £100 million before breaking even, a union has claimed.

The Transport Salaried Staffs Association (TSSA) said the new service, due to start next September, will be a “financial nightmare”, losing almost £20m in its first full year and well over £100m by 2033.

Transport for London (TfL) strongly denied the claim, saying there was “no doubt” that the service will pay for itself.

TSSA general secretary Manuel Cortes described the new Friday and Saturday night Tubes as a “vanity project” of London Mayor Boris Johnson, linked to the closure of ticket offices, which are due to start in February.

He said: “After bringing in the most expensive bus in the world, he is now leaving us with a rushed through all-night Tube service which has not yet been properly worked through in either financial or safety terms.

“We still have real concerns about safety on platforms and we would urge the mayor to delay the start of his wholesale Tube shake up for at least six months to allow those to be worked out before green lighting this project.”

A TfL spokesman said: “The TSSA have misinterpreted the figures. As we have made clear, although running costs are being finalised, by 2018 the additional revenues from the service are expected to cover operating costs, so to say that night Tube will lose £100m by 2033 is completely incorrect.

“In the first full year that night Tube operates we expect to generate around £19m of revenue, not lose it.

“The night Tube will be a huge economic positive for London. The net additional output produced as a result of night Tube to London’s economy equates to an extra £360 million over 30 years.”

Gareth Powell, London Underground’s director of strategy and service development, added: “The night Tube is well supported by Londoners and business, and independent research shows it will boost jobs and benefit the economy by hundreds of millions of pounds.

“Running costs for the new service are being finalised and there is no doubt that the service will pay for itself. We are also exploring any sponsorship opportunities that could make this transformative service even more cost-effective.”

London Assembly Labour transport spokesperson, Val Shawcross, said: “Whilst we support the principle of the night Tube, the fact that taxpayers could lose over £100 million before the project breaks even shows Boris Johnson is more focused on securing a legacy than doing it right.

“There are many different ways the night Tube service could be set up, including a staggered introduction or pilots which could save tens of millions of pounds. As it stands the mayor seems more intent on forcing it through quickly than securing best value for money.

“With travel fares rocketing by 40% since the mayor came to power, you’d think he’d be a bit more careful with Londoners’ money.”