UK outlines massive £15.6bn transport investment plan

A commuter train runs over the Knaresborough rail bridge in North Yorkshire, England, UK. Image: Adobe Stock

Announced by the head of the UK Treasury and Chancellor of the Exchequer, Rachel Reeves, during a speech in Manchester, England, the five-year programme spans 2027–2032 and is aimed at addressing regional imbalances in transport investment.

New funding is said to support tram extensions, metro upgrades, station redevelopments, and new rolling stock across the Midlands, North, and West Country.

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The largest allocations include:

• Greater Manchester – £2.5 billion ($3.4 billion) to extend the tram network to Stockport and add stops in Bury, Manchester and Oldham;
• West Midlands – £2.4 billion ($3.3 billion) to extend trams from Birmingham city centre to a new sports quarter;
• West Yorkshire – £2.1 billion ($2.8 billion) to begin its mass transit programme and upgrade bus stations in Bradford and Wakefield;
• East Midlands – £2 billion ($2.7 billion) to improve road, rail and bus connections between Derby and Nottingham;
• North East – £1.8 billion ($2.4 billion) to extend the Newcastle–Sunderland Metro via Washington;
• Liverpool City Region – £1.6 billion ($2.2 billion) to improve airport and stadium connections and launch a new bus fleet;
• South Yorkshire – £1.5 billion ($2 billion) for tram renewal and bus upgrades in Sheffield, Doncaster and Rotherham;
• Tees Valley – £1 billion ($1.4 billion), including £60 million for platform extensions at Middlesbrough Station;
• West of England – £800 million ($1.1 billion) for rail infrastructure and a regional mass transit link between Bristol, Bath and surrounding districts.

The investment package is said to mark a shift away from the UK Treasury’s ‘Green Book’ rules, which have historically guided how government spending decisions are made.

The Green Book uses economic cost–benefit analysis to determine whether a project offers good value for money, but it has been criticised for favouring investment in London and the South East, regions that typically show stronger short-term economic returns.

Chancellor Rachel Reeves said the government would update these criteria to prioritise projects in historically underfunded regions, such as the North and Midlands, aiming to close productivity gaps and unlock broader regional development.

The £15.6 billion package still requires confirmation through the UK government’s upcoming Spending Review, which is due 11 June. After the review, the government will finalise departmental budgets and determine whether the regional transport commitments move from political pledge to construction pipeline.

Several of the projects were first proposed under the previous Conservative government’s “Network North” plan, which repurposed funding from the cancelled High Speed 2 northern extension. The current Labour government said it reviewed and revalidated those repurposed schemes upon taking office in July 2024.

Construction timelines and procurement schedules for the new transport work have not yet been released.

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