Today’s spending review delivered a bold statement of intent on transport, with the UK Government unveiling a significant uplift in infrastructure spending aimed at boosting connectivity, driving regional growth, and levelling up areas outside London. With over £15 billion committed to new and expanded local transport networks across major city regions, the plans mark one of the largest regional transport investments in recent history.
Transport Spending – Key Points
£15 – 15.6 billion uplift in capital investment outside London, aimed at levelling up regional transport infrastructure, this includes:
A doubling of local transport capital spend in city regions across the North, Midlands, and South West between 2024/25 and 2029/30
Early investment (~£15bn down‑payment) ahead of the full £113bn capital projects envelope
Major city-region upgrades, including:
– North East: £1.8 bn Metro extension to Newcastle/Sunderland
– South Yorkshire: £1.5 bn tram network renewal
– West Yorkshire: £2.1 bn mass transit system, integrated with other transport
– Greater Manchester: £2.5 bn Metrolink expansion (new stops at Bury, Oldham, Stockport)
– Birmingham: £2.4 bn metro extension to Sports Quarter/Solihull
Additional regional allocations:
– Liverpool City Region: £1.6 bn
– West of England: £0.8 bn
– Tees Valley: £1.0 bn
– East Midlands: £2.0 bn
Wider national links, including improvements to Midlands and Wales rail links, and potential backing for a Liverpool–Manchester rail link as flagged in reports.
Local transport grants quadrupled (outside London), significantly boosting funding for buses, trams, and light-rail across regional authorities.
Strategic Context & Goals
These investments are part of a £113 bn capital spending envelope over the review period, with transport as a major component.
The government is also updating Treasury “Green Book” rules to ensure equitable distribution of funds to deprived regions, aiming to narrow the regional development gap.
The overarching goal is to drive regional economic growth, improve connectivity, reduce commute times and unlock employment opportunities—especially in the “Red Wall” constituencies.
Summary
The Spending Review announced today commits roughly £15–15.6 billion to regional transport infrastructure outside London. This represents a historic level of investment in public transport – spanning light rail, trams, buses, metro expansions, and local grants – aimed at levelling up economic development across the UK.