Surely the time has come for open-minded reconsideration of prudent, locally accountable revenue bonds. They have a proven track record and would facilitate devolution. Neither of these is attractive.
Bonds ought to have a great future, whatever now happens in London.
An agreed level of government grant guaranteed over specified intervals would be necessary but for most public sector investment projects it is a reasonable request. There need be no further recourse to local or national government guarantees of repayment. The chart shows the role of bonds of this kind in paying for investment in the New York subway. London's underground and other British transport operations produce considerable net revenues. Therefore a cash flow already exists to support the issue of revenue bonds in London and elsewhere.