Job cuts cause slip in tube usage

It has blamed this 6.4 per cent reduction on job losses stemming from the impact of the recession, many of which have occurred in financial centres such as Canary Wharf. It also added that Londoners appeared to be making a choice to travel less frequently by tube.

A spokesman said: "Tube passenger numbers are down, due to the recession, in line with lower employment.

"Clearly, this means reduced revenue from fares and has an impact on TfL's finances, now and in future.

"It is important, therefore, that we deliver the upgrade of the Tube, Crossrail and other transport improvements as efficiently as possible. At least £2.4billion in savings and efficiencies have already been found and we working to identify more."

TfL's announcement has sparked further debate as to whether London Mayor Boris Johnson will be forced to push through fare rises above inflation to deal with a transport funding gap. He told BBC London this week that some "very tough choices" would have to be made to address "very serious funding issues" in the organisation, but stopped short of addressing the thorny subject of fare hikes directly.

Transport for London re-iterated that "fares are a decision for the Mayor". But it did say that this decision would be made later in the year "based on our awareness of the need to balance revenue and ridership figures with the need to sustain vital transport investment and improvements for Londoners".