Commitment to Transport Investment: Rachel Reeves vows £15.6bn for Regional Transit Developments
Chancellor Rachel Reeves has unveiled a monumental £15.6 billion investment plan for local transport, marking a seismic shift in government investment policies. This ambitious spending, following Labour's defeat in the local elections in May, is set to revitalize urban regions across England, focusing primarily on the North, Midlands, and South West.
This colossal investment forms a significant aspect of the 11th June spending review, as stated by the Treasury, which targets doubling real-terms spending on city regions by 2029/30 compared to 2024/25 levels. This funding will pave the way for a dramatic reform in the government's approach to evaluating and allocating investments in regions.
Chancellor Rachel Reeves will deliver a speech in Greater Manchester on Wednesday, emphasizing the need for a nation that thrives collectively, rather than a handful of regions pulling ahead of the rest. She criticized the previous approach as a key factor in creating growth in too few places, which has led to wide regional disparities and stark urban-rural differences. The Chancellor advocates for a "new economic model" that focuses on investment across the country, not just selected regions.
Transport Secretary Heidi Alexander previewed the announcement, voicing excitement about the potential to enhance transport infrastructure in the North and Midlands, improving access to jobs, fostering economic growth, and enhancing quality of life. She downplayed rumors of a dispute with the Treasury and assured that there's a collaborative approach to spending priorities at the Cabinet table.
The funding will unlock several key regional transport links, ensuring that every region receives a fair hearing when it comes to investment decisions. Key projects to benefit include a North East metro extension, the interlinking of Birmingham and Solihull in the West Midlands, and an expansion of the Greater Manchester Metrolink tram network. The funds will be distributed among ten mayoral combined authorities, with Greater Manchester receiving the largest portion, followed by the West of England.
Experts from the Northern Powerhouse Partnership heralded the announcement, with chief Henri Murison declaring it a critical step towards promoting regional growth. The Institute for Fiscal Studies (IFS) anticipates that the spending review will primarily focus on bolstering the NHS and defense. Meanwhile, approximately 50,000 civil service positions may be affected as the government seeks to trim its budget.
The investment is expected to be dispersed incrementally from this year until the conclusion of the Parliament in 2029. This move represents the biggest ever investment in city-region local transport, aiming to dismantle that "hardwired London bias" in previous investment policies, empower local leaders, and drive economic growth and equity through modern, green, and accessible transport infrastructure.
- Chancellor Rachel Reeves' announcement of a £15.6 billion investment plan for local transport marks a significant shift in government investment policies, particularly focusing on regions such as the North, Midlands, and South West, to revitalize urban areas across England.
- This investment is a critical step towards promoting regional growth, as advocated by the Chancellor, who emphasizes the need for a nation that thrives collectively, rather than a handful of regions pulling ahead.
- The funding will be distributed among ten mayoral combined authorities, with Greater Manchester receiving the largest portion, followed by the West of England, in an effort to empower local leaders and drive economic growth and equity through modern, green, and accessible transport infrastructure.
- The investment in public-transit and transportation industries is expected to enhance access to jobs, foster economic growth, and enhance quality of life, while the spending decisions aim to dismantle the "hardwired London bias" in previous investment policies, and the funds will be dispersed incrementally until the conclusion of the Parliament in 2029.
