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Wednesday, 5 August 2020 - 9:12am

Up to £12 million in Government support for Nottingham’s tram operator

The Department for Transport (DfT) provides a coronavirus a support grant for the tram worth £3.7million to cover 12 weeks from 17 March.

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Nottingham City Council expects to receive the grant from Government.

In 2011, the Council entered into a Private Finance Initiative contract with Tramlink to build the NET Phase Two and operate the extended tram system in Nottingham until 2034.

But as a result of the Coronavirus pandemic, tram usage across the network has reduced significantly, this has had a direct impact on the fare income received by Tramlink.

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The Department for Transport (DfT) has recognised this and identified a support grant for the tram worth £3.7million to cover 12 weeks from 17 March.

Since then, the DfT has indicated that it will be providing further support up to £404,000 per week, based on an actual calculation of operating losses being incurred by Tramlink and to support them in restarting services fully. This support is currently agreed until 5 August 2020, but it is expected to continue beyond this date while Government is advising people to use public transport for essential journeys only, so this decision anticipates receipt of additional funds (up to a maximum amount of £12million) from the DfT to be used for this same purpose.

As and when further money is received by the Council, it will be transferred to Tramlink to fund the ongoing operation of the tram system in Nottingham. Only money received from the DfT after the required information has been provided to them and actual figures reconciled will be passed on to Tramlink.

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