A record £15.6 billion of funding for local transport projects in England’s city regions has been announced by Chancellor Rachel Reeves
The Chancellor, alongside Greater Manchester Mayor Andy Burnham and Transport Secretary Heidi Alexander, made the announcement at Mellor’s Rochdale facility, with the company describing it as testament to the trio’s commitment to the British industry. The funding represents more than double the real-terms increase in city-region capital spending on local transport by 2029/30 compared to 2024/25 and will empower mayors and combined authorities to deliver major improvements in buses, trams and trains, with a focus on Greater Manchester, the North, and the Midlands.
Mellor parent company Woodall Nicholson Group CCO Gustavo Marqueta commented: “We were honoured to host the Chancellor, Mayor Burnham, and Secretary of State for Transport Heidi Alexander for this announcement. At Mellor, we build buses that go where others can’t – connecting communities that are too often overlooked. This investment signals real change for people who rely on public transport most.”
The plans announced include over £2 billion to develop a new mass transit system in West Yorkshire, with ‘spades in the ground’ by 2028. Key projects also feature the expansion of Greater Manchester’s Metrolink tram network, the extension of the Tyne and Wear Metro to Washington in the North East, and the renewal of South Yorkshire’s Supertram. Additionally, the Liverpool City Region will benefit from new rapid bus routes, while Wakefield and Bradford will see the construction of modern bus stations to enhance local connectivity.
The Transport Secretary said: “Today marks a watershed moment on our journey to improving transport across the North and Midlands – opening up access to jobs, growing the economy and driving up quality of life as we deliver our plan for change. For too long, people in the North and Midlands have been locked out of the investment they deserve. With £15.6 billion of Government investment, we’re giving local leaders the means to drive cities, towns and communities forward, investing in Britain’s renewal so you and your family are better off.” Responding to the Chancellor’s announcement, Confederation of Passenger Transport CEO Graham Vidler said: “Millions of people who live and work in city regions will welcome this investment in public transport. It is vital that a healthy chunk of the money is spent on buses, which account for two out of three journeys and are by far the nation’s favourite form of public transport.
“Some of this funding could be used to speed up journeys by investing in bus lanes and priority schemes to allow public transport to bypass congestion. We look forward to seeing this money for city regions matched in the Spending Review next week with both capital and revenue funding across the country to ensure that all passengers, no matter whether they live in a village, town or big city, can benefit from faster, more frequent and better buses.”
RHA Managing Director Richard Smith expressed his disappointment at the coach sector being overlooked in the announcement. He said: “We recognise that the Government is committed to improving passenger connectivity and addressing regional imbalances. But it’s disappointing that none of the investment was earmarked for the coach sector, which plays a critical role in driving local and national growth.
“Passenger and charging infrastructure for coaches in many areas needs to vastly improve to make coach travel more desirable which would help those economies fully capitalise on their efficiency and sustainability. We also need significant investment in road projects to improve journeys for all road users. Congestion costs the UK more than £30 billion a year so it’s vital that we have roads and infrastructure that balances the commensurate needs of freight and passenger journeys – and indeed supports commercial vehicle decarbonisation. Ahead of next week’s Spending Review we urge the Government to commit to key infrastructure projects that will support the haulage, van and coach sectors that help facilitate the Government’s housebuilding programme and wider mission to drive economic growth.”
British Chambers of Commerce Head of Business Environment Jonny Haseldine added: “The pathway to the strong and consistent growth the UK economy needs has to come through investment in our regions. That means developing regional infrastructure, including transport projects and grid connectivity, improved rail capacity and electrification of key sections of the network. These projects can then give firms involved in the supply chains real confidence to start planning and investing in their local economies. But it is critical that no corner of the UK gets left behind and regional development works in alignment with national goals.” The Chancellor is set to announce the results of the 2025 Spending Review on 11 June which will outline the planned day-to-day expenditure for all government departments for the years 2026/27 to 2028/29, along with investment spending plans extending through to 2029/30.
