London mayor Sadiq Khan sets out 5.7 bln GBP TFL rescue plan for London – FT

The Financial Times has reported that London Mayor Sadiq Khan has called for a 5.7 billion pounds ($7.37 billion) bailout package for London’s transport operator, in an attempt to keep the capital’s transport system going for the next 18-months.

The news enhances the problematic consequences for the UK economy due to the new restrictions imposed on the public due to the spread of the coronavirus in what is a second wave that will clash with flu season.

Khan, who serves as the chairman of Transport for London, has requested for the financial package in his submission to the government’s spending review, as passenger numbers continue to plunge due to the coronavirus pandemic-induced strict measures on public transport, the FT said.

The pound is vulnerable to continued pressures as the second wave sends investors in the UK to the sidelines. 

The Bank of England has warned that the rising rate of coronavirus infections and a lack of clarity over the UK’s future trade relationship with the EU could threaten economic recovery.

Citing such uncertainty, the Bank held interest rates at 0.1%, a historic low following two emergency rate cuts in March. 

Andrew Bailey, the Governor of the BoE has said that negative interest rates remained in the “toolbox”, a further risk for the pound. 

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