Chancellor Rachel Reeves has announced a landmark £15.6 billion investment in regional transport infrastructure across England, signalling a major shift in government spending priorities ahead of next week’s Spending Review.
The funding will support new and expanded tram, train, and bus projects in mayoral authorities across the North, Midlands, and West Country — part of Reeves’ broader effort to rebalance the economy and address regional inequalities.
Speaking in Greater Manchester, Reeves criticised past Treasury rules for concentrating growth in London and the South East, and confirmed a break from the traditional “Green Book” framework used to assess the value of public investments. “For too long, growth has been created in too few places and felt by too few people,” she said.
Headline projects include:
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Greater Manchester: £2.5bn to extend tram lines to Stockport and add stops in Bury, Manchester and Oldham.
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West Midlands: £2.4bn to expand services from Birmingham city centre to a new “sports quarter.”
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West Yorkshire: £2.1bn for the long-awaited Mass Transit system, including new bus stations in Bradford and Wakefield.
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South Yorkshire: £1.5bn to renew the region’s tram network and bus services across Sheffield, Doncaster and Rotherham.
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Liverpool City Region: £1.6bn to improve links to Liverpool John Lennon Airport, major stadiums, and launch a new bus fleet.
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North East: £1.8bn to extend Metro services between Newcastle, Sunderland and Washington.
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West of England: £800m to improve rail services and develop a mass transit system connecting Bristol, Bath, and surrounding areas.
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Tees Valley: £1bn, including £60m to extend platforms at Middlesbrough station.
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East Midlands: £2bn for improved road, rail, and bus connections between Derby and Nottingham.
The package doubles current regional transport funding by the end of the decade and is part of a five-year allocation from 2027 to 2032.
While the announcement has drawn praise from regional leaders — including Tees Valley Mayor Ben Houchen and North East Mayor Kim McGuinness — some have criticised the delay in implementation. Houchen said it was “frustrating” that some projects had been stalled, but welcomed the eventual approval. Liverpool City Region Mayor Steve Rotheram called the investment a “massive vote of confidence.”
Opposition figures, however, were sceptical. Conservative shadow minister Gareth Davies accused Labour of rebranding already-announced Conservative projects, while Liberal Democrat MP Daisy Cooper urged the government to go further by reducing transport fares amid the cost-of-living crisis.
Think tank IPPR North also welcomed the funding but warned that questions remain over the long-term viability and operating costs of the proposed networks.
Reeves hinted that further transport announcements could follow in next week’s Spending Review, including the possibility of a new rail link between Manchester and Liverpool.
