Local transport across the North, Midlands and South West is set to benefit from billions of pounds of investment with trains, trams and bus projects outside of the capital part of the chancellor’s ‘renewal of Britain’.
Announced today, the shift away from the Treasury’s Green Book, comes prior to the government’s spending review next week where it will set out what each of its department’s purse will contain over the next three to four years.
The book, which calculates value for money, has been criticised for championing projects mainly based in the capital, such as HS2 which was scrapped before it reached the North, costing the government more than a £1 billion in cancelled contracts.
Chancellor Rachel Reeves called the move a way to narrow the gap between regions, while transport secretary, Heidi Alexander described it as a ‘watershed moment’, one which would open up access to jobs, economic growth and boost quality of life.
Henri Murison, chief executive of the Northern Powerhouse Partnership, said the long-term investment proposals would 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,” he 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.”
Featured within the long awaited transport improvements outside of London, is Greater Manchester which will receive £2.5 billion for its Metrolink services.
The plan would see its Stockport line extended, along with new stops in Bury, Manchester and Oldham added, as well as new trams and buses.
Neighbouring city, Liverpool is set to receive £1.6 billion for new links to its John Lennon Airport, as well as to Everton and Anfield stadiums, and new buses for the Wirral and St Helens.
The West Midlands will receive £2.4 billion to be used on tram expansions from Birmingham city centre to a new sports quarter.
In addition, there will be £2.1 billion funding for the 2028 West Yorkshire Mass Transit build, plus new bus stations in Bradford and Wakefield.
Further metro mayors are to receive transport investments in:
- South Yorkshire – £1.5 billion for a tram network renewal, as well as bus services across Sheffield, Doncaster and Rotherham by 2027
- North East – £1.8 billion to extend the Newcastle to Sunderland Metro via Washington
- West of England – £800 million to improve rail infrastructure across the region, including more trains between Brabazon and the city centre, plus the development of a mass transit development between Bristol, Bath, South Gloucestershire and North Somerset
- Tees Valley – £1 billion, including a £60 million platform extension at Middlesbrough station
- East Midlands – £2 billion to improve road, rail, and bus connections between Derby and Nottingham
The £15.6 billion regional transport boost forms a part of the five-year window spending review from 2027 to 2030 due to be announced on 11 June.
The Treasury said spends would more than double, from the current £1.14 billion annual transport allocation to £2.9 billion by 2029/30.
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