§ Mr. Spearing
To ask the Secretary of State for Transport, consequent to his permission to London Regional Transport to increase its borrowing powers, what increase, or reduction, in services planned by that body will be in operation subsequent to the new financial arrangement.
§ Mr. Freeman
On 14 February, my right hon. and learned Friend announced an increase of £62.55 million in London Transport's external finance limit for the current financial year. This will be achieved by the payment to London Transport of additional grant, not by an increase in borrowing powers. Of the £62.55 million additional grant, £55 million is needed in order to allow London Transport to meet its cash requirements for the remainder of the current financial year. The increase will allow London Transport to maintain present service levels during the remainder of this financial year. The announcement has no implications, favourable or adverse, for service levels in the coming financial year.