The package, which was announced yesterday as part of the 2013 Spending Round, comprises capital funding of around £1 billion per year from 2015 to 2021 as well as guaranteed borrowing of more than £600 million per year during the same period.
Through the capital funding commitment, an investment grant of £925m will be provided in 2015/16. This will rise to £1,007m in 2020/21.
Mayor of London Boris Johnson welcomed the announcement and said in a statement that the package will enable the continuation of Tube upgrades, investment into roads and cycling as well as improvements to bus, DLR, London Overground and Tramlink networks.
The funding package is a reduction of support for TfL of around 8.5%. The Mayor said that the reduction was the result of "successful negotiation" by him to protect the "best possible transport settlement for Londoners in terms of value for money".
He added that the funding comprises a £222m reduction to TfL's transport grant, which he said works out as 2.2% less in TfL's total capital and revenue budget based on 2013/14.
In addition to the funding package, the Chancellor has announced a further range of commitments to benefit infrastructure projects in the capital, including a £500m borrowing guarantee to support housing and infrastructure in Tottenham and a £90m commitment to carry out electrification of the Gospel Oak to Barking overground line.
The Chancellor and Transport Secretary Patrick McLoughlin have also agreed to devolve the West Anglian suburban rail services to the Mayor and TfL.
"Today’s announcement shows that the Government recognises the vital importance of continued investment into London, representing good news not just for Londoners, but for the wider UK economy, the capital’s being a key driver of growth across the country," said Johnson.
"As I have outlined in my 2020 Vision, to cope with expected population expansion, London needs sustained investment to keep the city moving and to build its economy. This settlement gives us a far greater level of financial certainty in line with measures we have lobbied for and to deliver vital infrastructure," Johnson said.
"I am pleased to also welcome specific commitments to a series of projects set to trigger significant development and regeneration in areas that need it most, helping to unleash the delivery of homes and jobs," he added.
