Chancellor Rachel Reeves has announced a substantial £15.6 billion investment in England’s transport infrastructure.
This funding will support tram, train, and bus projects across mayoral authorities in the Midlands, North, and West Country, bolstering regional connectivity.
The announcement precedes next week’s government spending review, which will allocate funding to Whitehall departments for the next three to four years.
This initiative addresses criticism of the government’s economic policies and responds to pressure from Labour MPs advocating for increased investment.
Tram projects are central to the plan, with Greater Manchester receiving £2.5 billion for network expansion and the West Midlands securing £2.4 billion for service extensions.
Furthermore, £2.1 billion will initiate the West Yorkshire Mass Transit programme by 2028, including new bus stations in Bradford and Wakefield.
Six additional metro mayors will also receive transport investments.
This marks Reeves’ departure from the Treasury’s stringent Green Book guidelines, previously criticized for favoring London and the South East.
Reeves stated that adhering to the Green Book’s rules has resulted in uneven regional growth, highlighting the need for a more equitable distribution of resources.
This policy shift will channel more funds to the North and Midlands, including Labour’s “Red Wall” constituencies.
While not unprecedented—former Prime Minister Rishi Sunak also reviewed the Green Book—this initiative builds upon, and aims to fully fund, projects initially proposed within his Network North plan.
Following the Labour government’s review, which deemed these projects underfunded, the Conservatives have accused Labour of replicating their announcements.
Reactions from regional leaders have been mixed, with some expressing frustration over delays while others celebrate the secured funding. Tees Valley Mayor Ben Houchen cited a year-long delay, yet expressed delight at the funding approval.
North East Mayor Kim McGuinness hailed the £1.8 billion allocation as transformative, echoing sentiments from Liverpool City Region Mayor Steve Rotheram.
However, the Liberal Democrats voiced caution, urging the Chancellor to deliver on past promises and address the ongoing cost of living crisis.
The IPPR North think tank, while welcoming the investment, raised concerns regarding long-term running costs and the networks’ financial sustainability.
When questioned about funding for a Manchester-Liverpool rail link, Reeves indicated further announcements during next week’s Spending Review.
This £15.6bn allocation represents a five-year funding commitment (2027/28-2031/32), effectively doubling the current annual spending to £2.9 billion by 2029-30.
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