Chancellor Rachel Reeves has announced up to £1.7 billion in new investment to supercharge regeneration across the North of England, giving metro mayors the powers and financial backing to break through planning barriers, accelerate major developments and unlock economic growth in the heart of the UK’s great northern cities.
The new funding is designed to help Mayors “bulldoze through roadblocks” that have stalled large‑scale regeneration schemes, from city‑centre housing and commercial developments to transport‑linked growth projects. It is expected to deliver new homes and career opportunities within a short commute for 9 million people living across the Northern Growth Corridor.
The funding follows a “just enough” public investment model, designed to unlock far larger sums of private capital by providing confidence and early-stage support to schemes that have struggled to get off the ground. This approach aims to help local leaders accelerate major regeneration programmes, new office space and commercial hubs, high‑quality brownfield housing, and transport‑linked job creation zones.
Reeves said the plans will allow people living across the Northern Growth Corridor to build careers in rapidly expanding sectors, such as Liverpool’s life sciences cluster or Leeds’ Northern Square Mile, all within easy reach of home.
Five major city regions will receive significant new allocations:
- West Yorkshire – £145 million for job‑creating developments including Leeds South Bank
- South Yorkshire – £85 million for regeneration along the Don Valley Corridor and the Sheffield Innovation Spine
- North East – £120 million to accelerate development in areas such as Newcastle and Gateshead Quays
- Greater Manchester – £175 million to support regeneration including the Victoria North development
- Liverpool City Region – £95 million for projects including growth around Liverpool Central
These investments form the next phase of the Government’s Northern Growth Strategy, recognising the importance of targeted funding in rebalancing the economy and supporting regions previously overlooked.
The Chancellor described investment in the North’s cities, towns and high‑potential areas as central to building a stronger, more secure UK economy. The strategy follows the landmark £45 billion Northern Powerhouse Rail announcement made earlier this year – the biggest transport upgrade in the North for a generation.
Commenting on the investment, Chancellor Rachel Reeves said:
“I want every part of Britain to do well. That’s why we’re going for growth all across the country, not just in a few places, because I want everyone to be able to succeed no matter what their parents do, where they grow up, or where they choose to settle down.
“Our economic plan is the right one. By bringing back stability in our public finances, boosting investment in our infrastructure and driving reform, we’re building a stronger more secure economy.”
The wider plan highlights not only transport transformation, but also the need to boost local economies through:
- better housing delivery
- strong cultural and skills investment
- deeper devolution deals
- business support tailored to regional strengths
The Government’s new approach, the Chancellor said, is designed to “tackle Britain’s geographical imbalances head on” by accelerating growth in success stories such as Manchester and Leeds, while ensuring high‑potential towns like Stockport and Warrington also feel real benefits.
The investment is part of a long-term plan to ensure the North becomes a powerhouse of innovation, productivity and modern infrastructure. By backing local leadership with resources to plan ahead and drive development at scale, the Government aims to reshape opportunities for millions of residents.
Greater Manchester Mayor Andy Burnham added:
“We have long made the case for the North as the UK’s biggest growth opportunity and it is great to see the Chancellor giving it such strong backing.
“Over the past decade, Greater Manchester has become the UK’s fastest growing city-region and in the next we are ready to go even further and faster. We have a plan to re-industrialise the birthplace of the Industrial Revolution and now have the necessary investment to deliver it.
“Greater Manchester is breaking with old discredited “trickle-down” models of economic growth and pioneering a new approach lifting all people and places. Our new Good Growth Fund is driving it and this welcome support from the Government is a vote of confidence in it. Later this week, we will set out a new round of investment in major projects across all ten boroughs, delivering the good homes, good jobs and better transport our residents deserve.”
With fresh investment, strengthened transport links and major regeneration set to accelerate, the North is positioned to play a central role in the UK’s next chapter of economic renewal.
Image credit: iStock
