In a major move aimed at driving regional economic growth, the Chancellor of the Exchequer has announced an unprecedented investment in local transport infrastructure across England’s city regions. With a focus on buses, trams, and local train networks, the government is delivering the largest-ever funding commitment for transport improvements over the next five years. This investment will benefit working people in the North, Midlands, and South West, providing better access to jobs, education, and opportunities.
A Renewed Focus on Regional Growth
In a speech delivered in Greater Manchester, Chancellor Reeves emphasized that for Britain to be truly better off, all regions must thrive—not just a select few. She pointed out that the current pattern of growth in the UK, concentrated in a few areas, has led to widening disparities between regions, cities, and towns. The Chancellor’s vision is to create a new economic model driven by investment across the country, aiming to reduce these gaps and deliver sustainable growth to every part of Britain.
The Chancellor’s speech underscored that the upcoming Spending Review, scheduled for next week, would focus on investment priorities that will deliver growth and renewal across the entire nation. She unveiled the first of these investments, including a groundbreaking £15.6 billion funding allocation for local transport projects in city regions. This represents a more than double real-terms increase in capital spending on local transport by 2029/30 compared to 2024/25.
Key Local Transport Projects and Impact
The £15.6 billion investment will empower local leaders to invest in vital transport projects that improve connectivity, reduce congestion, and boost local economies. Notable projects set to benefit from this funding include:
- Greater Manchester: £2.5 billion will transform the Metrolink tram network, creating new tram stops in Bury, north Manchester, and Oldham, and extending the network to Stockport town centre. The Bee Network, a fully electric public transport network, will also be developed, with the goal of achieving zero-emission public transport across buses, bikes, and trams by 2030.
- West Yorkshire: £2.1 billion will fund the development of the West Yorkshire Mass Transit system, which will connect six key transport corridors in the region. The plan includes creating new bus stations and improving transport links between towns like Bradford and Wakefield.
- South Yorkshire: £1.5 billion is allocated for renewing South Yorkshire’s tram network, with £530 million dedicated to replacing trams and modernizing stops. An additional £350 million will help reform the bus network in Sheffield, Doncaster, and Rotherham, with the aim of introducing franchised bus services by 2027.
- West Midlands: £2.4 billion will extend the metro network to Birmingham’s sports quarter and begin the development of mass transit routes from East Birmingham to North Solihull.
- South West and Other Regions: Funding has also been earmarked for metro and mass transit systems in areas like Tees Valley, the North East, and the East Midlands, with £2.0 billion allocated for mass transit between Derby and Nottingham.
A Shift in How Investments are Evaluated
In addition to the funding announcement, Chancellor Reeves also hinted at a review of the Treasury’s Green Book, which guides the evaluation of investment projects across the UK. The review aims to ensure a more balanced and fair approach to regional investments, so that every area of the country receives a fair hearing when it comes to funding decisions.
The full conclusions of the Green Book review are expected to be published on June 11, alongside the broader Spending Review. This will provide further insight into how the government plans to prioritize and evaluate regional investments.
Support from Industry Leaders
The commitment to invest in local transport has been met with strong support from various industry leaders. Henri Murison, Chief Executive of the Northern Powerhouse Partnership, praised the long-term investment in transport infrastructure, particularly the expansion of metro networks in key cities. He noted that such projects would drive regional growth, reduce productivity gaps, and unlock further private investment.
Jonny Haseldine, Head of Business Environment at the British Chambers of Commerce, echoed this sentiment, highlighting the importance of developing regional infrastructure to support strong, consistent growth. He also emphasized that aligning regional development with national goals is crucial for the UK economy’s future success.
Ben Plowden, Chief Executive of Campaign for Better Transport, welcomed the government’s focus on improving public transport, especially in regions that have been underserved in the past. He also called for additional revenue funding to support the operation of these services once the infrastructure improvements are in place.
This major investment in local transport marks a crucial step towards levelling up regions across England. By improving connectivity, reducing travel times, and making cities more accessible, these projects will help unlock economic opportunities for millions of people. The next steps in the Spending Review, including the release of the Green Book review, will be critical in ensuring that the right investment priorities are set to create a stronger, more equitable Britain.
