The government will underwrite 95 per cent of the money borrowed by the two companies that will run London's tube, it has been revealed.

Under the contracts, if a bidder runs into financial trouble or is deemed to be failing to deliver on its contract the government must help find a buyer. If the sale price does not cover the cost of bond and bank debts, government will cover the repayments.

Forum Response: Transport for London

A spokesman for Transport for London told ePolitix.com: "We have always maintained that there is very little risk for the private sector under the terms of the PPP deal. The fact that the government is prepared to bear 95 per cent of the risk is further evidence that this is not a good deal for London. We continue to believe that TfL's plan is faster, safer and cheaper than the government's part privatisation."