Chancellor Rachel Reeves has announced a major £15.6 billion investment in transport infrastructure across England, focusing on tram, train, and bus services in key mayoral regions including the Midlands, the North, and the West Country.

The funding, revealed ahead of next week’s government spending review, aims to rebalance transport spending and stimulate regional grkowth. It marks Reeves’ first significant departure from the Treasury’s traditional “Green Book” rules, which have been criticised for favouring London and the South East.

Key Investments Across England

The investment package includes:

• Greater Manchester: £2.5bn to expand the tram network to Stockport and add new stops in Bury, Manchester, and Oldham.
• West Midlands: £2.4bn to extend trams from Birmingham city centre to a new sports quarter.
• West Yorkshire: £2.1bn to launch the Mass Transit Programme by 2028, including new bus stations in Bradford and Wakefield.

Additional metro areas will also receive significant funding:

• South Yorkshire: £1.5bn to renew the Sheffield tram network and improve bus services across Doncaster and Rotherham.
• Liverpool City Region: £1.6bn for better connections to Liverpool John Lennon Airport, local football stadiums, and a new bus fleet for St Helens and the Wirral.
• North East: £1.8bn to extend the Newcastle-Sunderland Metro via Washington.
• West of England: £800m for rail upgrades and a mass transit system linking Bristol, Bath, and surrounding areas.
• Tees Valley: £1bn, including £60m for extending platforms at Middlesbrough station.
• East Midlands: £2bn to improve road, rail, and bus links between Derby and Nottingham.

A Shift in Spending Strategy

Reeves criticized the Treasury’s Green Book, saying it led to economic growth being “created in too few places and felt by too few people.” The new approach is designed to channel more funding into historically underinvested regions, including Labour’s battlegrounds in the so-called Red Wall.

Transport Secretary Heidi Alexander hailed the announcement as a “watershed moment” that will boost job access, economic growth, and regional quality of life.

Mixed Political Reactions

While local leaders welcomed the funding, opposition voices raised concerns:

• Kim McGuinness, North East Mayor, called the funding a “game changer.”
• Steve Rotheram, Liverpool City Region Mayor, said it was a “massive vote of confidence.”
• Shadow Chancellor Mel Stride criticised Labour’s transport plan as lacking credibility, accusing the party of making “empty tax promises.”
• Lib Dem MP Daisy Cooper warned that many of these communities had seen similar promises before, urging delivery over rhetoric.

Background and Future Funding

Many of the projects were previously included in the Conservative government’s plans under Rishi Sunak’s “Network North,” which was rolled out after the controversial cancellation of HS2 north of Birmingham. The Labour government re-evaluated those proposals after taking office in July, claiming they lacked full funding.

The £15.6bn package will be delivered between 2027/28 and 2031/32. According to the Treasury, annual transport funding will rise from £1.14bn in 2024-25 to £2.9bn by the end of the decade—more than doubling current levels.