England is set to receive its biggest ever investment into city regional local transport over the next five years in a move labelled by the Chancellor as the ‘Renewal of Britain’.
Travellers across the North, Midlands and South West are soon to see major investment into buses, trams and local train infrastructure in a bid to provide stronger connections throughout the country.
The announcement, which was made by Chancellor Rachel Reeves during a speech in Greater Manchester, involved a pledge of 15.6 billion GBP to be invested into local transport projects across English city regions, including South Yorkshire, the North East, East Midlands and Tees Valley.
The funding comes ahead of the government’s upcoming Spending Review, which is set to be revealed next week, and doubles real-terms increase in capital spending on local transport in city regions by 2029/30 compared to 2024/25.
Transport Secretary Heidi Alexander, said:Today marks a watershed moment on our journey to improving transport across the North and Midlands – opening up access to jobs, growing the economy and driving up quality of life as we deliver our Plan for Change.
For too long, people in the North and Midlands have been locked out of the investment they deserve. With £15.6bn of Government investment, we’re giving local leaders the means to drive cities, towns and communities forward, investing in Britain’s renewal so you and your family are better off.
Projects expected to receive funding as part of the investment include projects such as the Metro extension linking Washington to Newcastle and Sunderland, as well as the renewal of South Yorkshire’s tram network linking both employment and housing areas in Sheffield and Rotherham.
Other projects poised to receive funding as part of the investment include the West Yorkshire Mass Transit system, a metro extension to Birmingham’s sports quarter enabling mass transit from East Birmingham to North Solihull and the transformation of Greater Manchester’s Metrolink tram network, allowing for additional stops in Bury, north Mancehster and Oldham, as well as an extension to Stockport town centre.
Henri Murison, Chief Executive of the Northern Powerhouse Partnership, said:This government’s decision to back major local transport projects with serious, long-term investment will be critical to driving regional growth.
The economic revival of Greater Manchester, enabled by sustained investment in the tram network in particular, has already begun to close the productivity gap with London.
To build on that success and replicate it across all our regions in the North, we need to see key projects delivered – including the extension of the Metro to Washington, the replacement of the Sheffield tram fleet, and the extension of Metrolink to Stockport.
Too many times in the past, a trade-off was made – due to limited funding – between connectivity within and between our regions. The spending rules adopted last autumn mean this government can invest in both at the same time, unlocking far greater productivity gains than prioritising one at the expense of the other.
The Chancellor is expected to confirm a change in regulatory processes when approaching and evaluating regional investment funding following a review of the Treasury’s Green Book and how it is used.
The full review of the Green Book will be published on 11 June alongside the wider Spending Review.
