The latest £1.08bn bailout is the third extraordinary funding and financing package for TfL and takes to £4bn the total pandemic cash support since March 2020.

As part of today’s settlement, the Mayor has agreed to deliver an extra £300m of savings or new income sources in 2021 to 2022.

London mayor Sadiq Khan also agreed to prepare a plan to accelerate TfL’s existing modernisation programme of £730m by April 2023 and review TfL’s generous pensions scheme.

The Government has also agreed to fund around a third of the expected £40m cost of repairing and strengthening Hammersmith Bridge.

Engineers have come up with a radical plan to build a temporary double-decker crossing within the existing structure of Hammersmith Bridge, which has been closed fully on safety grounds since 13 August 2020.

This will allow the bridge to be brought back into use while extensive structural repairs are carried out.

London’s Transport Commissioner Andy Byford said: “Today’s funding agreement with the Government provides £1.08bn in base funding and further support should our passenger revenue income be lower than forecast until 11 December 2021 to enable us to continue to run near full levels of service to stimulate London’s recovery and deliver a host of improvements like the Elizabeth line, Northern line extension and expansion of London Overground.

“It is vital that we also use this period to agree a longer-term settlement so that we can plan effectively for London’s future and deliver maximum value for money through our contracts and supply chain. ”