Government to spend £15bn on transport projects outside the South-east

Rachel Reeves has announced £15bn for transport projects in the north of England, the Midlands and the West Country to stimulate growth outside of the South-east.

The chancellor unveiled a funding package this morning for a raft of rail, tram and bus projects ahead of the government’s spending review, due next week, which is expected to include cuts to many departmental budgets.

It is also expected to be part of the government’s 10-year infrastructure strategy, which will be announced later this month.

Tram schemes have been handed the biggest investments, including £2.5bn to extend Manchester’s network to Stockport and £2.4bn to expand Birmingham’s network to the city’s planned ‘sports quarter’.

A long-awaited tram network in West Yorkshire will get £2.1bn to start construction of the first two lines by 2028, along with new bus stations in Bradford and Wakefield, while South Yorkshire’s tram network has been handed £2.1bn for renewal works and bus service.

Liverpool has been allocated £1.6bn to improve links to locations in the city including the new Everton Stadium, and the North East will get £1.8bn to extend the Newcastle to Sunderland Metro via Washington.

Other funding packages include £2bn for the East Midlands to improve road, rail and bus links between Derby and Nottingham and £800m for rail upgrades in the West of England.

Some of these projects were part of former prime minister Rishi Sunak’s Network North plan, which backed schemes including the West Yorkshire tram system to compensate for the decision to scrap HS2 north of Birmingham.

Network North was put on ice following Labour’s election victory last year after Reeves claimed the programme had not been fully funded.

The money will be part of a five-year funding allocation from 2027/28 to 2031/32.