Chancellor Rachel Reeves has announced a record £15.6 billion investment in local transport projects across England’s city regions, aiming to boost economic growth and improve daily life for working people across the North, Midlands, and South West.
Speaking in Greater Manchester, Reeves emphasized that prosperity “cannot rely on a handful of places forging ahead,” vowing instead to build “a new economic model” that invests in all parts of the UK. The announcement comes ahead of the Spending Review, where further regional investments will be confirmed.
The five-year funding package will more than double capital spending on city-region transport by 2029/30 compared to 2024/25, empowering local leaders to prioritise impactful projects.
Key allocations include:
Greater Manchester: £2.5bn to extend trams to Stockport and add stops in Bury, Manchester, and Oldham.
West Midlands: £2.4bn to extend tram services from Birmingham to the new sports quarter.
West Yorkshire: £2.1bn to begin the Mass Transit system by 2028, with new bus stations in Bradford and Wakefield.
South Yorkshire: £1.5bn to modernize trams and buses in Sheffield, Doncaster, and Rotherham.
Liverpool City Region: £1.6bn for faster airport links and a new bus fleet.
North East: £1.8bn to extend the Metro from Newcastle to Sunderland via Washington.
West of England: £800m to boost rail and launch mass transit across Bristol and nearby areas.
Tees Valley: £1bn including £60m for platform upgrades in Middlesbrough.
East Midlands: £2bn to improve road, rail, and bus links between Derby and Nottingham.
This is the largest transport package of its kind and part of a broader economic shift. Reeves is moving away from the Treasury’s traditional “Green Book” funding rules, long criticised for favouring London and the South East.
This is a major step toward rebalancing the UK economy. It gives power to local leaders to deliver transport upgrades that match regional needs through improving daily commutes, boosting local economies, and supporting greener travel. By shifting away from London-centric funding rules, it helps close the gap between regions and lays the groundwork for more inclusive, long-term growth across the country.
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.”
Henri Murison, Northern Powerhouse Partnership, welcomed the long-term commitment and said projects like the Stockport and Washington metro links are key to closing the productivity gap with London.
