Ken Livingstone today promised to spend nearly £100 million buying Croydon Tramlink back from its private owners.

The Mayor said contractor Tramtrack Croydon Limited had failed to run the system effectively and Transport for London should take control.

He also plans to extend the tram lines, which carry 25 million passengers every year, to Crystal Palace. Under the Mayor's proposals, TfL will buy control of Tramtrack Croydon's 99-year lease for £98 million, saving TfL £4 million a year in payments to the contractor.

He said: "The Croydon tram is vital to the hundreds of thousands of Londoners who use it but has been allowed to gradually fall into disrepair.

"It is a reminder that the Conservative policy of privatising vital transport services has failed. Long-term investment and even basic maintenance ground to a halt when the owner was not making enough profit to repay its debt.

"If I'm re-elected as Mayor we will immediately get to work cleaning up stations, refurbishing trains and improving safety.

"And we will start ... upgrading trains and track, adding more capacity with extra carriages and extending the line to Crystal Palace."

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