Chancellor Announces £15bn For Transport Projects
Billions of pounds of investment in transport infrastructure in England have been announced by Chancellor Rachel Reeves.
People across the North, Midlands and the South West will benefit from the biggest ever investment in buses, trams and local train infrastructure in city regions as the Chancellor today promises the renewal of Britain to make all parts of the country better off.
In a speech in Greater Manchester, Reeves is expected to say that “a Britain that is better off cannot rely on a handful of places forging ahead of the rest of the country,” adding that the “result of such thinking has been growth created in too few places, felt by too few people and wide gaps between regions, and between our cities and towns.”
Reeves will say the Spending Review next week will take different choices, with investment in a “new economic model – driven by investment in all parts of the country, not just a few.”
She will unveil the first investment announcements from the Spending Review, with £15.6 billion of funding for local transport projects in England’s city regions – including South Yorkshire, the North East, the East Midlands and Tees Valley. The funding – a more than double real-terms increase in capital spending on local transport in city regions by 2029/30 compared with 2024/25 – will empower local leaders to invest in transport projects that will make a difference to their local area.
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.”
“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.”
“This long-overdue investment outside of London and the South East will see projects like the Metro extension linking Washington to Newcastle and Sunderland and the renewal South Yorkshire’s tram network linking employment and housing areas in Sheffield and Rotheram get off the ground – creating jobs, better commutes, bigger labour markets and more opportunity.”
The funding comes ahead of next week’s Spending Review when the Chancellor will set out future government is spending.
The five-year settlements will mean the Mayor of West Yorkshire can commit to delivering the West Yorkshire Mass Transit, which will be fully integrated with cycling, walking, bus and rail, making journeys quicker, more accessible and more reliable across the region.
The funding will also mean the Mayor of the West Midlands can build a metro extension to Birmingham’s sports quarter, making a start on his ambitions to deliver mass transit from East Birmingham to North Solihull.
It will also allow the Mayor of Greater Manchester to transform the Metrolink tram network, with new stops in Bury, north Manchester and Oldham and a Metrolink extension to Stockport town centre.
The Chancellor is also expected to confirm “a step change in how government approaches and evaluates the case for investing in our regions” following a review of the Treasury’s Green Book and how it is used, “to make sure that this government gives every region a fair hearing when it comes to investments”.
Kate Nicholls, Chief Executive of UKHospitality, said:
“This is significant investment in regional transport and will provide a boost to local economies, creating hospitality and tourism jobs.”
“This is significant investment in regional transport and will provide a boost to local economies, creating hospitality and tourism jobs.”
“Reliable, efficient and accessible transport links are critical for opening up tourism and providing more opportunities for visitors to experience the UK, all of which also boosts local employment. There’s also the added advantage of hospitality workers having easier journeys to and from work, which can be a barrier when transport links are not suitable.”
“It’s fair to say that our transport infrastructure in many parts of the country has been lacking and this goes a long way to address that.”
“I’m pleased to see the Government recognise the need for a new economic model that aims to benefit all parts of the country. This is exactly the approach we have been calling for and one that hospitality can support to deliver. We hope this is the start of broader support for the hospitality sector, including no new cost increases.”
“As the UK’s most socially productive sector, hospitality can provide jobs in every part of the country, support employment for all and drive social mobility.”
“We now need to see this recognised and embedded in the Government’s Industrial Strategy, with a clear strategy of how to unlock the potential of hospitality and the foundation economy.”