Following the government’s latest spending review, Chancellor Rachel Reeves has confirmed a £15.6bn investment package aimed at upgrading transport infrastructure outside London. The funding forms part of a broader £113bn capital programme designed to drive long-term economic growth through improvements in transport, housing, and energy.
The review outlined major allocations for regional transport, including £2.5bn for Greater Manchester, £2.4bn for the West Midlands, and £2.1bn to kick-start West Yorkshire’s mass transit system. South Yorkshire secured £1.5bn to modernise its tram network, and the East Midlands was awarded £2bn to begin designing a new transport link between Derby and Nottingham. Many of these projects had been previously announced but never funded under the Conservatives.
Reeves positioned the spending as a deliberate move away from centralisation, confirming a change to Treasury rules to prioritise projects that enhance productivity in regions often overlooked. She stressed that the review marks a “step change” in how investment is assessed and allocated, giving every region a “fair hearing”.
Despite concerns around tightening departmental budgets, Labour insists this capital package reflects its commitment to rebuilding Britain with fairness at its core - placing infrastructure and regional opportunity at the heart of its economic strategy.
