A sell-off of Transport for London land could net London taxpayers a £20 billion windfall to fund fare cuts and Tube upgrades, a Tory mayoral candidate said today.

Stephen Greenhalgh claims TfL is sitting on hundreds of acres of prime central London development space that could be sold to fund schemes including a blanket three per cent fares cut, which he has promised if elected. TfL has suggested the plan would require £1.9 billion by 2020-21.

But Mr Greenhalgh said: “We could get 10 times that amount from selling land. You would also be able to invest a lot of money into capital projects that TfL wants to carry out. TfL needs to stop acting like a developer and concentrate on running its services.”

He believes there are at least 1,000 acres of developable TfL land, worth about £20 million an acre.

A TfL spokeswoman said the organisation has a £16 billion “savings and efficiencies target” for 2020-12 and a plan to maximise revenue from commercial assets, including property, to generate a further £3.4 billion.

She added: “Our modern approach … will give us a long-term sustainable revenue stream now and well into the future, which a one-off sale of all assets would simply not deliver.”