Massive Transport Infrastructure Investment Unveiled by Chancellor

Chancellor Rachel Reeves has unveiled a landmark £15bn transport infrastructure investment package targeting major improvements across England. The announcement, made just days before the government’s spending review, will see critical funding flow into tram, train and bus services in key mayoral regions.

The ambitious package, described by Reeves as a break from outdated Treasury rules, puts transport infrastructure investment front and centre of the government’s regional growth plans.

Reeves, under pressure to inject optimism into the economy, revealed specific funding allocations across multiple regions:

• Greater Manchester: £2.5bn to expand tram services to Stockport, with additional stops in Bury, Manchester and Oldham.
• West Midlands: £2.4bn for tram extensions from Birmingham to a new sports hub.
• West Yorkshire: £2.1bn to kick-start the Mass Transit programme by 2028 and upgrade bus stations in Bradford and Wakefield.
• South Yorkshire: £1.5bn to modernise Sheffield’s tram network and buses across Doncaster and Rotherham.
• Liverpool City Region: £1.6bn for faster links to Liverpool John Lennon Airport and key stadiums, plus a modern bus fleet.
• North East: £1.8bn to extend the Metro system from Newcastle to Sunderland via Washington.
• West of England: £800m for rail upgrades, enhanced service frequency in Bristol, and mass transit connections across the region.
• Tees Valley: £1bn including £60m for platform extensions at Middlesbrough station.
• East Midlands: £2bn to boost road, rail and bus links between Derby and Nottingham.

This comprehensive transport infrastructure investment covers urban and semi-urban regions, aiming to balance economic growth nationwide. In her Manchester speech, Reeves criticised the Treasury’s “Green Book” for reinforcing regional disparities. The investment shift, she said, would bring prosperity to areas long left behind.

“Growth created in too few places, felt by too few people and wide gaps between regions, and between our cities and towns.”

This marks the first time the Treasury will officially move away from using the Green Book as a strict funding guide—a move welcomed by many northern leaders.

Transport Secretary Heidi Alexander called the package “a watershed moment” in the government’s regional development strategy. “Opening up access to jobs, growing the economy and driving up quality of life,” she said.

Local leaders echoed that sentiment:

• North East Mayor Kim McGuinness praised the £1.8bn as a “game changer.”
• Liverpool Mayor Steve Rotheram described the support as “a massive vote of confidence.”

However, critics from opposition benches weren’t convinced.

Shadow Chancellor Mel Stride accused Labour of lacking credible plans: “They’ve betrayed pensioners, farmers, and hardworking families… making empty tax promises that simply don’t add up.”

Daisy Cooper, Treasury spokesperson for the Liberal Democrats, struck a cautionary tone: “These communities have heard these same promises before… we must not see people led up the garden path once again.”

She urged the government to focus not only on infrastructure, but also on fare reductions for households struggling with the cost-of-living crisis.

Some of these investments were initially announced under former PM Rishi Sunak’s Network North scheme. However, Labour insisted that many of those projects lacked full funding and required thorough review.

The revised five-year funding plan will run from 2027/28 to 2031/32, with spending rising from £1.14bn in 2024-25 to £2.9bn by 2029-30—effectively doubling current allocations.

A Treasury spokesperson confirmed this new framework will make regional transport infrastructure investment more sustainable and impactful.

Reeves’ announcement underlines Labour’s broader strategy: deliver tangible results in transport and economic connectivity before the next general election.

While the full impact of this transport infrastructure investment will unfold over the coming years, the move signals a clear break with the past—and a renewed focus on bridging the North-South divide.

Summary of Transport Funding by Region

Transport infrastructure investment isn’t just a buzzword—it’s the backbone of Labour’s effort to reimagine England’s regional economy.