Claim-from Boris Johnson at PMQs: “The current Mayor of London @SadiqKhan had effectively bankrupted @TfL
even before the coronavirus hit.”

Is it true? Read below...

Before the pandemic, TfL had cash reserves of £2.2bn, well above the two months’ operating costs amounting to £1.2bn that it is legally required to hold.

It is true that TfL has been facing significant operating losses. In 2018-19 they had said they hoped to break even by 2021-22. The London Assembly thought that was optimistic. The picture wasn't rosy but it wasn't bankruptcy.

Going into the crisis, there was an operating deficit of about £500m.Yes Khan has had a fare freeze. But that wasn't the only reason. Even before Covid there had been declining passenger numbers. The government had cut a £700m operating grant. Delays to Crossrail had added costs.

Indeed, TfL says that they receive 40% less funding than they did in 2010/11 (when Johnson was Mayor). A reduction of about £1.4bn a year.

Nonetheless (before covid) TfL had cut the operating deficit by around £1bn on a like for like basis compared to 2015/16.

The deficit for TfL had improved for five years in a row going into the crisis. Reserves had also increased in recent years (though obviously so did debt, given continued though shrinking deficit)

Then covid hit. Passenger numbers plummeted and have not recovered. In the first few months of the year both revenues and passenger numbers fell by 90%. There's been some recovery but it's been nowhere near where things were.

Consequently TfL has had a £1.4bn bailout earlier in the year. Now they're looking for over £5bn over the next 18 months. To some extent they'll say that's also part of requiring central government funding which had been withdrawn in years past- and to providing funding certainty

So was TfL "bankrupted" before going into this crisis? The answer quite simply is no.

Yes fare freeze (which I assume PM is referring to) affected finances but the deficit was falling and cash reserves solid. The problem came with Covid (and previous withdrawal of govt grant).