Byers hit by Tube cash claim

The Tube relies on government grants for improvements

Transport Secretary Stephen Byers said he was increasing support for the Tube when he knew government investment was dropping by 30%, according to a newspaper report based on leaked correspondence.

Letters leaked to the Guardian reportedly reveal that the government, despite trumpeting an increase in funding from £104m to £520m, had promised £775m before the election.

Bickering over who hasn't come up with the cash is the last thing Londoners need

Tom Brake
Lib Dem MP

London Underground (LU) had already started spending and works for this level of funding, outlined by Mr Byer's predecessor John Prescott, during 2001-2002.

The correspondence reveals a blazing row between the LU and the Department of Transport, Local Government and the Regions which was accused by LU's then finance chief of a "major u-turn".

It was alleged "safety imperatives" would get £30m less, maintenance of lifts and escalators £16m less and £72m less for the upkeep of stations.

Spin controversy

The press release containing Mr Byers' talk of an increase in funding was issued via civil servants.

Officials for Mr Byers said the differences in amounts between them and the LU formed part of normal bargaining during spending negotiations.

Mr Byers is currently under pressure over spin doctor Jo Moore for her e-mail soon after the 11 September attacks which suggested using the atrocities as a window for "burying" bad news.

He has also been criticised over the manner of Railtrack's insolvency.

London Underground told the Guardian: "The reduction in planned investment has in no way affected our high safety standards.

"It is no secret that LU has been underfunded for years."

'Bickering not helping'

Liberal Democrat transport spokesman Tom Brake claimed the correspondence was further evidence of the government and LU's inability to run the Tube effectively.

"Bickering over who hasn't come up with the cash is the last thing Londoners need," he said.

"This latest incident is hardly likely to win public confidence for Labour's public-private partnership proposals.

"It raises the question of who would pick up the bill if there were to be a funding shortfall under PPP."

Mr Brake is urging the Commons Public Accounts Select Committee to investigate whether public money has been spent efficiently on the PPP plans and to request an audit of the proposals by the National Audit Office.