Chancellor Rachel Reeves announced a shocking £15.6 billion investment to improve transport infrastructure all across England. This new initiative is a major step towards a complete reevaluation of the Treasury’s investment prohibition. It is intended to improve tram, train and bus provision in mayoral metro authorities in the Midlands, North and West Country.
The Chancellor’s announcement further signals a change in transport funding towards the national conversation on regional disparities. Reeves emphasized the need for equitable growth, stating that there has been “growth created in too few places, felt by too few people and wide gaps between regions, and between our cities and towns.” This investment is intended to fill those gaps and provide real, equitable returns to communities of all sizes.
The money will be spread over five fiscal years starting in 2027/28 and running through 2031/32. It will boost active transport spending three times the current levels, ramping up from £1.14 billion in FY 2024-25 to £2.9 billion by 2029-30. This significant increase is a clear signal from the federal government that they’re serious about transforming transportation networks and improving connectivity between regions of the country.
As a result of this campaign, six other metro mayors will see increased targeted federal dollars invested in their transportation projects. The headline allocations are £1.5 billion for South Yorkshire. This funding will provide a renewal of the tram network and an extensive bus restoral programme across Sheffield, Doncaster, and Rotherham by 2027. The £1.6 billion investment will enliven the Liverpool city region. It will provide quicker journeys to Liverpool John Lennon Airport, Everton Stadium, and Anfield.
Among individual areas, the North East is due a huge increase in funding. Of this, an eye-popping £1.8 billion will be used for extending the Newcastle to Sunderland Metro through Washington. This co-investment of £800 million will improve both passenger and freight rail infrastructure across the West of England. This funding will increase train frequency between the new Brabazon industrial estate in Bristol and the city center. Tees Valley is to be given £1 billion, with plans including a £60 million platform extension scheme for Middlesbrough station.
It’s going to be completely East Midlands centric, the East Midlands is going to get £2 billion! This funding will improve road, rail and bus connections between Derby and Nottingham. This coordinated push highlights the federal government’s commitment to creating new economic opportunities across the country with better connected, multi-modal transport.
The former Prime Minister Rishi Sunak had previously initiated a review of the Treasury’s investment rules as part of the Conservative Party’s Levelling Up agenda. The current administration seems to be doubling down on that lesson with this new funding plan.
In his Spending Review announcement, Chancellor Reeves allocated an initial £2.1 billion. This funding will enable the construction to begin on the West Yorkshire Mass Transit programme by 2028. This project is likely to complement and interconnect with other local initiatives to improve their transit offerings and accessibility across the metropolitan area.
The announcement has drawn a positive and negative response from elected officials. Steve Rotheram described it as a “massive vote of confidence in our region,” reflecting optimism about the potential benefits of such investments. Yet critics have pointed to flaws in the federal government’s entire approach to economic crises.
Daisy Cooper expressed caution, urging that “we must not see people led up the garden path once again,” highlighting skepticism about whether these promises will be fulfilled in practice. Meanwhile, Mel Stride accused the government of neglecting key demographics, stating they have “betrayed pensioners, farmers, and hardworking families” while seemingly making unrealistic tax promises.
Chancellor Reeves is scheduled to deliver her Spending Review next week, which will outline funding allocations for each Whitehall department over the next three to four years. This review will be key in shaping how transport funding aligns with the new government’s priorities.