Croydon loses £2.067m transport funding after mayor pulls cycle lane
TfL will release the money only after Croydon repays £234,917 and submits a revised Local Implementation Plan.
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Transport for London announced on 29 July 2026 that it has frozen £2.067 million of local transport funding for Croydon. The action follows Mayor Jason Perry’s decision in May to remove the TfL‑funded London Road cycle lane without the required consent, as reported by MyLondon.
Funding freeze and repayment demand
Croydon Council faces £2m TfL funding freeze over cycle lane removal
Transport for London has halted funding after the council removed safety wands without required notification.
TfL’s Walking and Cycling Commissioner Will Norman told the Local Democracy Reporting Service that boroughs cannot use public money to deliver a scheme and then unlawfully remove it. He added that the council must repay the full amount spent on the segregated lane, which totals £234,917, before any further Local Implementation Plan (LIP) funding is released.
Mayor Perry said the lane “endangered cyclists and blocked emergency vehicles”, a statement reproduced in MyLondon. Croydon West MP Sarah Jones criticised the decision, saying the mayor’s “repeated disregard for process has left Croydon residents paying the price”, also cited by MyLondon.
Projects put on hold
Croydon Council faces questions over unminuted Gaskell appointment
Stephen Gaskell appointed interim assistant chief executive in July 2026, but the decision is not recorded in council minutes.
The funding freeze affects several planned improvements. According to MP Jones, £1.35 million earmarked for Healthy Neighbourhood schemes, including new zebra crossings and contra‑flow cycle lanes, is on hold. Bus priority upgrades worth £286,000 and cycle‑parking provisions of £60,000 are also paused, as are road redesign works at Portland Road.
“It is right that the council is required to repay the TfL funding that was spent on the cycle lane they removed without consent.”
Will Norman, Walking and Cycling Commissioner, TfL
Council’s response
Councillor Alasdair Stewart, Croydon’s Cabinet Member for Streets and Enforcement, told MyLondon that the council remains in “routine discussion with TfL” and thanked the authority for its “constructive approach”. He rejected MP Jones’s criticism, stating that the mayor is acting on resident concerns.
Next steps
Croydon Council has committed to repaying the £234,917 and is preparing a revised Local Implementation Plan submission. TfL said funding will be released once the revised plan meets its requirements, but no specific date has been set.
Questions this report answers
+Why has TfL frozen Croydon's transport funding?
TfL froze the money after Mayor Jason Perry removed a TfL‑funded cycle lane without the required notification under the Traffic Management Act. The authority said boroughs must deliver projects they are funded for and follow legal processes before receiving further support.
+How much does Croydon have to repay before funding resumes?
Croydon must repay £234,917, the amount TfL spent on the London Road segregated cycle lane. TfL confirmed that repayment is a condition for releasing any further Local Implementation Plan funding.
+Which projects are delayed by the funding freeze?
The freeze holds up £1.35 million for Healthy Neighbourhood schemes, £286,000 for bus priority improvements, £60,000 for cycle‑parking, and road redesign work at Portland Road. These projects remain unfunded until the freeze is lifted.
+When can Croydon expect the frozen funding to be released?
Funding will be released once TfL receives a revised Local Implementation Plan that meets its criteria and confirms the council has repaid the £234,917. No exact timeline has been provided by TfL as of the latest report.
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