TfL agrees emergency funding extension with UK government
March 22, 2021, 12:30 pm

TfL agrees emergency funding extension with UK government

Before the coronavirus pandemic, about 70% of Transport for London’s income came directly from fares.

About £500m will support London’s Covid-hit tube, train, bus and tram network until after May elections

Transport for London (TfL) and the government have agreed emergency funding worth about £500m to support the capital’s tube, train, tram and bus network through the pandemic until after the May local elections.

London’s transport is heavily dependent on fare income, particularly from the tube, which has declined dramatically because of the coronavirus.

The transport secretary, Grant Shapps, said the settlement was extending the deal made in November on the same terms, until a long-term agreement could be made with the newly elected mayor – at a point when, under the government’s roadmap, non-essential retail and other parts of the economy should be open and transport demand could be considered.

An initial payment of £260m will be topped up with a further grant based on actual revenues, a figure TfL estimates will be about £225m.

Shapps said it would mean more than £3bn had been given to TfL since March 2020 “under the condition that the network must make efficiency savings so it can reach financial sustainability as soon as possible”.

TfL has been forced to raise fares above inflation and the Labour mayor, Sadiq Khan, has threatened to bring in further road charges to balance the books, in a political standoff since the start of the pandemic that has jarred with the Conservative government’s £10bn bailout of national rail.

A TfL spokesperson said: “We continue discussions with the government on our need for further financial support and a long-term capital funding deal.”

Khan said: “This seven-week extension will enable TfL to carry on running the safe, reliable and frequent services that will be vital as lockdown restrictions begin to ease.

“These discussions will continue as it is essential that TfL has further financial support and a long-term capital funding deal that will allow it to support a strong and robust recovery for London and the UK.”Before the pandemic, about 70% of TfL’s income came directly from fares, with grant income worth £700m a year from central government phased out between 2015 and 2019.

Extensions of emergency funding for other urban transport systems around the country were announced at the weekend, with £16m for Manchester’s Metrolink, and £17m shared between Tyne and Wear, Sheffield, West Midlands and Nottingham’s tram and light rail networks.

Stephen Edwards, the lead board member on light rail for the Urban Transport Group, said: “We are currently in dialogue with government over the scale and duration of recovery funding that will be needed beyond this further tranche of emergency funding, given that pre-pandemic levels of patronage are unlikely to quickly return and the need to ensure that light rail and tram systems can play their full part in a green and just recovery from Covid-19.”

source: Gwyn Topham

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.