Metronet to cost taxpayers £2bn

London Underground will get nearly £2bn of taxpayers’ cash to cover the collapse of Metronet, it emerged today.

The funding is in addition to a 10-year £39bn package for Transport for London (TfL).

A TfL spokesman said: “It will have limited net impact on public finances since Metronet's borrowing was already part of the government's balance sheet.”

Transport secretary Ruth Kelly said: "The settlement gives London Underground the resources needed to manage Metronet's administration and move toward a more stable long-term footing and continue the work to maintain, renew and upgrade the Underground."

But Shadow Transport Secretary Theresa Villiers criticised the government for allowing the situation, which will see it pay £1.7bn for Metronet’s debt, to arise in the first place.

“The taxpayer is picking up a £2bn tab for Gordon Brown’s incompetence when he set up the Metronet PPP. But the total cost of this shambles is still unclear,” she said.