Moodys confirms that as a result of the 2011 fare rise, the operating transport budget saw a greater than expected income, combined with lower than expected expenditure – meaning the Tory Mayor raised fares more than he needed to.
Moodys says:
"Rising demand, coupled with the effects of the January 2011 fare increase, has contributed to an increase of 9.7% of TfL's 2010/11 income from fares compared to the previous fiscal year, 5.9% ahead of the budgeted revenues.
”Operating expenditure for the fiscal year 2010/11 has been 8.4% below the previous year expenditure, and 8.0% below budget. The main savings have been from lower staff costs, overhead reductions and cost efficiencies related to the 2010 acquisition of Tube Lines.”
