Nottingham's tram network has received £13million in government support during the coronavirus pandemic as journey numbers have dropped dramatically.
In 2011, Nottingham City Council entered into a Private Finance Initiative (PFI) with Tramlink to build NET Phase Two and operate the extended tram system in Nottingham until 2034.
As a result of the coronavirus pandemic, the tram usage has reduced significantly, which has had a direct impact on the fare income received by Tramlink.
The Department for Transport has recognised this and has been paying a support grant since March 2020 to ensure a service can continue to be provided for essential journeys.
The support grant is calculated based on operating losses being incurred by Tramlink, and at the end of December 2020 a total of £13.2 million has been received.
It is expected that this support grant will continue to be paid until the social distancing measures are relaxed.
Councillor Adele Williams, portfolio holder for local transport at Nottingham City Council, said: “The Government has so far made a commitment of around £20m to support the city’s tram network during the Covid pandemic, when passenger usage has been much reduced. It is, of course, welcome but we need further assurances that this vital financial support will continue.
“The council remains concerned that the current funding package ends in a month’s time and we need government to acknowledge the important, and carbon-free, role that tram services will play in recovery plans for the city centre and local economy in the months ahead as restrictions lift.”
NET is currently running a Sunday service for passengers due to the decreased demand.
