Chancellor Pledges £15.6bn to Transform Transport Across UK Regions
Chancellor Rachel Reeves has unveiled a landmark £15.6 billion investment plan to upgrade transport infrastructure across England’s regions, targeting major improvements in trams, trains, and buses throughout the Midlands, North, and West Country.
The funding announcement comes just ahead of the government’s crucial spending review, which will determine how resources are allocated across government departments for the next three to four years.
Facing internal pressure from Labour MPs and public criticism over economic policies and benefit cuts, Reeves is now signalling a more active approach to public investment.
A major focus of the package is on expanding tram services. Greater Manchester will receive £2.5 billion to extend its Metrolink to Stockport and add new stops in Manchester, Oldham, and Bury. The West Midlands will see a £2.4 billion expansion from Birmingham to a new sports district.
Other key investments include:
- £2.1bn for West Yorkshire’s new Mass Transit system, set to begin construction by 2028, alongside new bus stations in Bradford and Wakefield
- £1.5bn for South Yorkshire to upgrade its tram and bus systems by 2027
- £1.6bn for Liverpool to improve airport access and bus networks across St Helens and the Wirral
- £1.8bn for the North East to extend the Metro from Newcastle to Sunderland via Washington
- £800m for West of England to boost rail service frequency and develop a regional mass transit solution
- £1bn for Tees Valley, including a £60 million upgrade at Middlesbrough Station
- £2bn for the East Midlands to enhance road, rail, and bus links between Nottingham and Derby
The initiative marks a departure from the Treasury’s long-standing “Green Book” rules, which many critics—including Labour MP Jeevun Sandher—say have disproportionately favoured London and the South East when assessing value-for-money on major projects.
Speaking in Manchester, Reeves said outdated investment rules have “concentrated growth in too few places,” and promised to redirect funding to more regions left behind in past decades.
Transport Secretary Heidi Alexander hailed the move as a “watershed moment” in delivering better access to jobs and economic opportunity. North East Mayor Kim McGuinness called her region’s £1.8bn share a “game changer,” while Liverpool Mayor Steve Rotheram described the funding as a “vote of confidence” in local communities.
However, the announcement drew skepticism from opposition leaders. Shadow Chancellor Mel Stride accused Labour of making uncosted promises, warning that families, pensioners, and farmers were being “betrayed” under Reeves’ budget.
Liberal Democrat Treasury spokesperson Daisy Cooper said the government must now follow through, cautioning against “phantom transport networks” and calling for fare cuts to ease the cost-of-living burden.
Some of the projects in Reeves’ plan had previously been floated by the Conservative government under former Prime Minister Rishi Sunak’s “Network North” plan, introduced after the cancellation of HS2’s northern extension.
Labour revisited and adjusted these plans upon entering office in July, arguing that many lacked full funding commitments.
According to the Treasury, the £15.6 billion plan covers a five-year period from 2027–2032, doubling the current transport budget from £1.14 billion in 2024–25 to £2.9 billion by 2029–30.
With growing political stakes in the so-called “Red Wall” and increasing pressure to improve regional equality, the new transport plan represents a strategic and symbolic shift in national infrastructure priorities.
