Autumn Budget 2026: New mayoral powers could support future light rail investment

The Autumn Budget, announced on Wednesday, 28th October, has outlined new financial powers for mayoral authorities that could help support future transport and mass transit schemes across England.

The measures include a £1.5 billion borrowing facility for Mayoral Strategic Authorities from April 2028, along with £285 million in Good Growth funding to support local investment and economic development. These measures could give local leaders more flexibility to develop transport projects and support longer-term infrastructure ambitions.

The Chancellor also highlighted the potential for greater local powers to unlock new tram schemes, citing the Black Country Metro extension as an example of a project that could benefit.

The West of England Combined Authority has reported £752 million in transport funding in its response to the Budget, alongside ongoing work to develop mass transit options for the region. The authority also pointed to proposals for greater fiscal devolution, including mayors retaining a share of income tax from 2028.

The Budget reaffirmed the Government's commitment to exploring ways to support new mass transit schemes through the Mass Transit Taskforce, which is expected to conclude its work by the end of 2026. UKTram Board members, including Managing Director James Hammett, continue to support the Taskforce's work and contribute industry expertise to discussions about the future development of mass transit.

UKTram Chair, Steve Edwards, commented: 

“Giving mayors greater powers and financial flexibility is a welcome step for light rail, and so is the Chancellor’s recognition of schemes like the Black Country Metro extension. We look forward to the Mass Transit Taskforce’s recommendations. UKTram stands ready to support delivery against them, for new schemes and for the long-term renewal of the networks we already have.”

As authorities across the country continue to explore opportunities for new and expanded transport systems, UKTram will follow developments around the Government's devolution proposals and the forthcoming recommendations of the Mass Transit Taskforce.

Read the full Autumn Budget 2026: HM Treasury – Budget 2026