Chancellor Rachel Reeves is poised to unveil a major £15.6 billion investment in regional transport infrastructure as part of the UK government’s broader push to shift away from austerity and toward long-term, investment-led growth. The announcement marks a central component of the government’s £113 billion capital spending strategy, designed to boost economic activity and reduce regional inequality by investing in key public services and infrastructure. The funding will be directed at improving transport links across several regions outside of London, including Greater Manchester, West Yorkshire, the West Midlands, South Yorkshire, and the East Midlands.
Projects set to benefit from the new investment include the long-anticipated extension of Greater Manchester’s Metrolink tram system to Stockport, enhanced bus corridors in Liverpool, and the establishment of a West Yorkshire mass transit system. Additionally, a new rail connection between Manchester and Liverpool is planned to improve travel times and reduce congestion. These initiatives aim to improve public transport options, foster greater regional connectivity, and support economic development in areas that have historically received less infrastructure funding compared to the southeast of England.
Chancellor Reeves emphasized the government’s commitment to rebalancing economic opportunity across the country. To support this vision, she confirmed that Treasury rules are being updated to ensure investment decisions prioritize economically underperforming regions rather than favoring already prosperous areas. This strategic shift seeks to address long-standing disparities in public investment, which have contributed to public frustration in regions that feel neglected by successive governments.
The transport spending pledge comes at a time when the Labour government is under pressure to deliver tangible improvements in services and infrastructure. Officials acknowledge that trust in political leadership is fragile, especially in the north of England, where communities have often felt overlooked in national policymaking. By directing substantial funding toward transport upgrades, the government hopes to not only improve daily life for millions of people but also reinforce its message of economic fairness and renewal.
While most departments have now agreed on spending plans, some, such as housing, policing, and energy, remain in sensitive negotiations. With police leaders warning of service strain and public sector unions pushing for adequate support, the final spending review due on June 11 will be a critical test of the government’s ability to match its ambitions with effective delivery. The outcome will shape the narrative of Labour’s economic strategy and its capacity to govern with both purpose and pragmatism.
