Chancellor Rachel Reeves has announced a £15.6 billion investment in regional transport infrastructure across England, aimed at revitalising public transport systems in the North, Midlands and West Country. The funding will go towards major tram, train, and bus projects in mayoral areas and marks a significant departure from the Treasury’s traditional funding model.
Speaking in Greater Manchester ahead of next week’s spending review, Reeves positioned the investment as part of Labour’s plan to deliver long-overdue upgrades outside of London and the South East. She criticised the Treasury’s existing Green Book rules, which she said had caused “growth created in too few places, felt by too few people.”
Major Transport Projects Across England’s Regions
Among the largest allocations is £2.5bn for Greater Manchester to extend the tram network to Stockport and expand services in Bury, Manchester, and Oldham. The West Midlands will receive £2.4bn for new tram routes connecting Birmingham city centre with a sports quarter development.
Other headline investments include:
• £2.1bn for West Yorkshire to launch its mass transit system by 2028 and upgrade bus stations in Bradford and Wakefield
• £1.8bn for the North East to extend the Newcastle-Sunderland Metro via Washington
• £1.6bn for Liverpool City Region, including faster links to Liverpool John Lennon Airport and new buses in St Helens and Wirral
• £1.5bn for South Yorkshire to modernise trams and improve bus networks in Sheffield, Doncaster, and Rotherham
• £1bn for Tees Valley, including £60m to extend Middlesbrough station platforms
• £800m for the West of England to enhance Bristol rail links and create mass transit routes across the region
• £2bn for the East Midlands to boost transport links between Derby and Nottingham
These commitments are part of a five-year funding cycle from 2027–28 to 2031–32, and will see the annual investment allocation double from £1.14bn in 2024–25 to £2.9bn by 2029–30, according to Treasury estimates.
Labour Rejects Green Book Rules in Bid to Close Regional Gap
The funding marks Reeves’ first open break from the Treasury’s Green Book investment rules, which have long been criticised for favouring projects in the South East. Reeves said the changes are vital to reduce regional inequalities and deliver better outcomes in the so-called “Red Wall” constituencies.
While former chancellor Rishi Sunak had also reviewed the Green Book and announced similar projects under the Network North plan, Labour says those initiatives lacked full funding. Labour’s review and reallocation now bring those projects forward with confirmed financial backing.
Mixed Political Reaction to Transport Pledges
Reaction to the announcement was mixed. Conservative Treasury spokesman Gareth Davies accused Labour of “copying and pasting” Tory pledges, while Tees Valley Mayor Ben Houchen called the delays “frustrating” but welcomed the eventual approval. North East Mayor Kim McGuinness labelled her region’s £1.8bn share a “game changer”, and Liverpool Mayor Steve Rotheram called it a “massive vote of confidence”.
However, Liberal Democrat Treasury spokesperson Daisy Cooper warned that communities had “heard these same promises before,” and called on the government to focus not just on infrastructure, but also cutting public transport fares for families facing the cost-of-living crisis.
Reeves hinted there would be further transport announcements in her upcoming spending review, including potential funding for a rail link between Manchester and Liverpool.
