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Transport FAQs

Spending and costs

Which bodies and services does the Greater London Authority fund?
The Mayor sets a budget which ensures that the Greater London Authority (GLA) group is properly financed. The group consists of:

• the GLA itself
• Transport for London
• the London Development Agency
• the Metropolitan Police Authority
• the London Fire and Emergency Planning Authority.

How is the budget set?
The Mayor proposes a budget covering the GLA group and it is scrutinised by the London Assembly. The Assembly can amend the budget, if it can achieve a two-thirds majority in favour of any proposed amendment.

How much does the GLA spend and how is it financed?
In 2005/06 the budget requirement for the GLA group is calculated as follows:

More details can be found in the Mayor's Budget pages.

What do the changes mean to Council Tax payers?
This increase leads to a GLA precept of £254.62 for the year for a Band D household. Of this £196.28 (three quarters) is for policing, £44.15 for the fire service, £7.20 for the GLA , and £6.99 for transport.

There is a 5.6 per cent increase in the budget requirement and a 5.5 per cent increase in the council tax precept.

This will cost Londoners living in a band D household an extra 26p a week.

On average more than three quarters of the council tax paid on a Band D household in London goes to the local borough council, 17 per cent goes to the police, 3.8 percent goes to the Fire Authority and less than one per cent goes to each of Transport for London and the Greater London Authority.

The priorities for the Mayor's fifth budget are to extend the safer neighbourhood policing by a further 160 teams with 5 for each borough, deliver improvements in the overall performance of the fire service, deliver further transport improvements to tackle congestion and make the network safer, more reliable, comfortable, environmentally friendly and accessible to all, and provide a package of measures to improve Londoners' environment and quality of life.

Most of the increase is for policing, with a modest increase for the fire service and the GLA, partly offset by a reduction in the amount for transport.

How much does the GLA itself cost me?
The costs to pay for the Mayor, the Assembly, their support services and provision for future elections is £60.9m in 2005/06. This is about 2% of the planned spending of the GLA group. Most of this cost is met by government grant. Only £7.20 of an annual Band D tax bill is for the GLA itself.

Who checks that the GLA is spending its money properly?
The GLA and its functional bodies are subject to the local government accounting framework. It is subject to audit by the Audit Commission.

The government's powers to limit excessive Council Tax increases by local authorities also apply to the GLA.

How is the money for vital services protected?
The Mayor is free to decide how funds will be allocated, except for safeguards on service standards, (subject to the Assembly's right to amend the budget with a two-thirds majority). This freedom maximises the Mayor's accountability to Londoners for the GLA's priorities and efficiency. There are three key safeguards:

• The Home Secretary is able to set a minimum level for the Metropolitan Police Authority's budget if he or she considers that this is needed to provide an efficient and effective police service.
• The Secretary of State for Transport, Local Government and the Regions has the power to ensure that the London Fire and Emergency Planning Authority maintains nationally agreed standards of fire cover.
• A large proportion of spending on Transport for London and the London Development Agency is met by central government grants specifically earmarked for these purposes. The Mayor is not able to use these grants for other purposes.

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