On Mon, 8 Jan 2018 11:24:38 +0000, Robin wrote:

On 08/01/2018 10:36, Recliner wrote:

snip
This is a form of off-balance sheet government borrowing.

I am long past the need to know but thought that accounting standards
had now stopped such sale and leaseback deals escaping the balance
sheet. I can't see TfL arguing successfully it's an operating lease.
And I think IFRS16 removes even that distinction from next year for
plant and machinery so TfL would have to show a “right to use the stock”
asset and a "lease" liability on their balance sheet.

It would be much
cheaper if the Treasury borrowed the money directly.
Cheaper for TfL, yes. Whether it's cheaper for the country depends on
what the bond markets decide about UK national debt.

And people outside London paying increased fares year by year might ask
why Londoners who don't should be bailed out.

Yes, that does the raise the question of why TfL is still freezing
Tube fares when it doesn't have enough budget to renew life-expired
fleets.