Budget 2025: Government commits long-term support to mass transit and urban connectivity

Image Credit: TfL

Yesterday, (November 26th) the Government signalled continued confidence in urban rail and mass transit schemes through this week’s Budget, setting out commitments that reinforce the role of light rail, tramways and metro-style systems.  

Funding announcements included support for major national infrastructure projects, alongside intent for regional mass transit, including the next steps for West Yorkshire’s long-term network ambitions.  

For the light rail sector specifically, one of the most significant updates is the Government’s support for Transport for London and the Greater London Authority’s proposed Docklands Light Railway (DLR) extension to Thamesmead.

The scheme, which includes a twin-bored tunnel and two new accessible stations, represents a major step towards improving connectivity in one of London’s most underserved areas. Expected to be funded through TfL and GLA (Greater London Authority) borrowing with long-term government backing, the project aligns closely with the national shift towards high-capacity, zero-emission public transport options.

Beyond London, the Budget reaffirmed commitments to wider mass transit planning, including work on the Northern Growth Corridor and combined authority proposals for Leeds, building on previous government support for West Yorkshire Mass Transit. These emerging plans continue to demonstrate the growing recognition of tramways, light rail, and metro-style systems as essential tools for regeneration, decarbonisation and economic growth.

In addition to high-profile schemes, the Budget also addressed broader issues shaping modal choice, including the Government’s intention to explore a pay-per-mile approach for electric vehicles. Sector voices highlighted the importance of ensuring such mechanisms remain fair while supporting investment in accessible public transport, walking and cycling networks. The balance between cleaner vehicles and the need to avoid increased road traffic underscores the need to expand reliable light rail and mass transit alternatives.

As more local authorities explore new tramway and light rail proposals, these commitments provide an opportunity to advance scheme development and strengthen business cases that reflect the needs of modern cities. 

UKTram will continue to work with Government, combined authorities and industry partners to ensure that light rail and other guided transport systems remain central to the UK’s vision for connected, thriving, low-carbon places.