London Local Authorities and Transport for London Act 2003

7 The purposes referred to in paragraph 2 above are—

(a) the making good—

(i) in the case of a borough council, to their general fund; and

(ii) in the case of Transport for London, to the financial reserves for which provision is made under section 85(4)(c) of the Greater London Authority Act 1999 (c. 29) in calculating Transport for London’s component budget for the financial year in question;

of any amount charged to that fund under paragraph 2 above in the four years immediately preceding the financial year in question;

(b) meeting costs incurred whether by the council or by some other person, in the provision or operation of, or of facilities for, public passenger transport services;

(c) the purposes of a project connected with the carrying out by the appropriate highway authority (whether or not the borough council) of any operation which, within the meaning of the Highways Act 1980 (c. 66) constitutes the improvement of a highway in the council’s area;

(d) meeting costs incurred by the borough council or Transport for London in respect of the maintenance of roads maintainable by them at the public expense;

(e) meeting all or any part of the cost of the doing by the council or Transport for London in their area of anything—

(i) which facilitates the implementation of the London transport strategy; and

(ii) which is for the time being specified in that strategy as a purpose for which a surplus may be applied by virtue of this paragraph; and

(f) making to any other London authority contributions towards the cost of the doing by that other authority or anything towards the doing of which in its own area the authority making the contribution has power—

(i) to apply any surplus on the account required to be kept under paragraph 1 above; or

(ii) to incur expenditure required to be brought into that account.