Biggest investment in city region local transport announced

In a landmark move for the light rail sector, the Chancellor has announced the largest-ever investment in local transport across England’s city regions.  

The £15.6 billion funding commitment marks a pivotal moment in the Government’s ‘Plan for Change’ to create a more connected, prosperous, and sustainable Britain. The announcement was made during a speech in Greater Manchester, with the Chancellor highlighting that growth and prosperity cannot rely solely on a handful of regions. 

Instead, the investment will empower local leaders across the North, Midlands and South West to develop and enhance bus, tram and local train infrastructure, transforming daily commutes and boosting local economies. 

The new funding represents a more than double real-terms increase in capital spending on local transport in city regions by 2029/30 compared with 2024/25. Notable allocations include: 

→ South Yorkshire: £530 million to renew the tram network, modernising stops and rolling stock.  → West Midlands: £2.4 billion, including a metro extension connecting Birmingham’s City Centre to its new sports quarter, a critical first phase in the region’s mass transit ambitions.   → Greater Manchester: £2.5 billion to expand and modernise the Metrolink network with new stops in Bury, north Manchester and Oldham, plus an extension to Stockport town centre.   → North East: £1.8 billion, featuring a Metro extension linking Newcastle and Sunderland via Washington.   → East Midlands: £2 billion to develop a new mass transit system linking Derby and Nottingham.   → West Yorkshire: A five-year funding settlement will enable the Mayor to move forward with the West Yorkshire Mass Transit system, connecting cycling, walking, bus and rail networks for more accessible and efficient travel. Construction is set to begin by 2028, with services targeted to open by 2030. 

Other city regions will also benefit, with significant investments in enhancing bus, rail and cycling infrastructure, all aimed at boosting connectivity and driving local growth. 

Transport Secretary Heidi Alexander hailed the investment as a “watershed moment” that will bring real improvements to people’s lives while supporting economic growth.

James Hammett, Managing Director of UKTram, welcomed the announcement, saying: 

“This investment is a hugely positive step for light rail and astrong vote of confidence in the value of light rail to Britain’s transport network, and we look forward to working with local leaders to help deliver on these exciting plans.” 

The announcement comes ahead of next week’s Spending Review, where further details will be set out, including the conclusions of the Treasury’s Green Book review aimed at ensuring fairer regional investment. 

As the light rail sector continues to grow and innovate, UKTram remains committed to supporting local authorities and operators in maximising the benefits of these investments.