The UK Government is injecting cash into the North, Midlands and the South West for buses, trams and local train infrastructure in city regions.
The move, which is part of the government’s plans to reduce what it describes as “wide gaps between regions” comes ahead of the Spending Review next week.
Chancellor Rachel Reeves has said that £15.6bn of funding for local transport projects will be available 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”, it said.
Investment will be used on schemes such as 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.
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.
It also means the Mayor of the West Midlands can build a metro extension to Birmingham’s sports quarter, making a start on plans to deliver mass transit from East Birmingham to North Solihull.
It will also allow the Mayor of Greater Manchester to renovate the Metrolink tram network, with new stops in Bury, north Manchester and Oldham and a Metrolink extension to Stockport town centre.
The Chancellor said the investment was “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.
The full conclusions of the Green Book review will be published on 11 June 11 – alongside the wider Spending Review.
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, Chief Executive of the Northern Powerhouse Partnership, said:
“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.”
Jonny Haseldine, Head of Business Environment at the British Chambers of Commerce, said:
“The pathway to the strong and consistent growth the UK economy needs has to come through investment in our regions.
“That means developing regional infrastructure, including transport projects and grid connectivity, improved rail capacity and electrification of key sections of the network.
“But it is critical that no corner of the UK gets left behind and regional development works in alignment with national goals.”
Image from Shutterstock
