Ahead of the Chancellor’s spending review next week, HM Treasury has announced major capital investments in transport projects across the North, Midlands, and Southwest.
The Government calls it the ‘biggest ever’ investment in local transport, and it is part of the broader “Plan for Change” focused on regions outside London.
What is the announcement?
- £15.6bn for local transport in city regions across England
- Doubling capital investment by 2029/30 (vs. 2024/25)
- First major commitment ahead of next week’s Spending Review
Where is the Funding Going?
- Greater Manchester: £2.5 billion to grow the Metrolink tram network and establish a fully electric “Bee Network” public transport system by 2030.
- Liverpool City Region: £1.6 billion, funding new bus rapid transit routes, including to Liverpool John Lennon Airport and new stadiums, and a brand-new franchised bus fleet.
- West Yorkshire: £2.1 billion to begin construction of West Yorkshire Mass Transit by 2028 and upgrade transport corridors.
- North East: £1.8 billion for a Metro extension connecting Newcastle, Sunderland, and Washington, serving a key manufacturing zone.
- Tees Valley: £1.0 billion, including £60m for a Platform 3 extension at Middlesborough station to improve network flow.
- South Yorkshire: £1.5 billion, including £350m to reform and franchise the bus network across the region by 2029.
- West of England: £0.8 billion to enhance rail infrastructure and develop a mass transit system connecting Bristol, Bath, South Gloucestershire, and North Somerset.
- East Midlands: £2.0 billion for designing a new mass transit system connecting Derby and Nottingham, with wider transport improvements.
- West Midlands: £2.4 billion for Metro expansion, linking Birmingham City Centre to a new sports quarter and initiating mass transit from East Birmingham to North Solihull.
What is New About This?
- Five-year settlements mean longer-term planning certainty
- Local leaders are empowered to choose and deliver services which meet local needs
- Treasury Green Book reform to give regional projects fairer appraisal, with more detail to follow at the 11th June Spending Review
- Framing this package as economic renewal and productivity-focused, not just transport investment
What does this mean?
- HMT says these regional projects are “likely to be taken forward by mayors.” But a key question will be how much autonomy regional leaders will actually have over how these funds are allocated and delivered?
- While Green Book reform may sound technical, it has the potential to be a game-changer by unlocking funding for regions that have historically lost out to London and the South East. Regional leaders and metro mayors have long pushed for this change.
- Delivery, coordination, and follow-through will be crucial. With more power shifting to local and regional authorities, so too does responsibility. That brings greater risk, but also greater opportunity to tailor solutions and drive local impact.
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