People across the North, Midlands, and South West are set to benefit from the largest-ever investment in local transport infrastructure, as Chancellor Rachel Reeves today announced a £15.6 billion funding package for buses, trams, and local train services.
In a speech delivered in Greater Manchester, the Chancellor outlined a bold new economic vision aimed at levelling up the country by investing in every region—not just London and the South East. The funding, part of the upcoming Spending Review, represents a more than twofold real-terms increase in capital spending on local transport in England’s city regions by 2029/30 compared to 2024/25.
A Britain that is better off cannot rely on a handful of places forging ahead of the rest of the country.
— Rachel Reeves (@RachelReevesMP) June 4, 2025
Today we are investing billions in transport projects across the North, Midlands and West of England.
Change promised. Change delivered.
The five-year settlements will empower local leaders to deliver long-awaited transport upgrades, including:
- Metro extension from Washington to Newcastle and Sunderland in the North East (£1.8bn)
- Renewal of South Yorkshire’s tram network, linking Sheffield and Rotherham (£1.5bn)
- West Yorkshire Mass Transit system, fully integrated with walking, cycling, bus, and rail (£2.1bn)
- Metrolink expansion in Greater Manchester, with new stops in Bury, Oldham, and Stockport (£2.5bn)
- Metro extension to Birmingham’s sports quarter, part of wider East Birmingham–North Solihull transit plans (£2.4bn)
Other funding will see £1.6bn for the Liverpool City Region, £0.8bn for the West of England, £1bn for the Tees Valley, and £2bn for the East Midlands
Commenting on the Chancellor’s announcement, 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.”
These projects are expected to create jobs, improve commutes, expand labour markets, and unlock new opportunities for communities long underserved by public transport.
Reeves also announced a “step change” in how the government evaluates regional investment, following a review of the Treasury’s Green Book. The revised approach aims to ensure every region receives a fair hearing when funding decisions are made.
Henri Murison, Chief Executive of the Northern Powerhouse Partnership, also commented:
“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 full conclusions of the Green Book review will be published on 11 June alongside the Spending Review.
Image credit : iStock
