UK Chancellor Rachel Reeves Unveils £15.6 Billion Transport Boost and Spending Review Ahead of Budget Allocations

London, June 4, 2025 – Chancellor Rachel Reeves has committed £15.6 billion ($21.1 billion) to a landmark investment in regional transport infrastructure outside London, as part of a broader Spending Review to be launched next week. The funding will be directed at tram, train, and bus projects across the Midlands, North, and West Country, aiming to address years of underinvestment and boost productivity in Britain’s city regions.

During a speech in Manchester, Reeves outlined the government’s intention to deliver the “biggest ever investment” in transport links outside London and the South East. The investment will be channeled through mayoral authorities, with notable allocations including £2.5 billion to expand Greater Manchester’s tram network into Stockport and increase stops in Bury, Manchester, and Oldham; £2.4 billion for the West Midlands to enhance services from Birmingham city center to a new sports quarter; and £2.1 billion to launch the West Yorkshire Mass Transit program by 2028, which will build new bus stations in Bradford and Wakefield.

Further regional breakdowns include:

• South Yorkshire: £1.5 billion for tram and bus network revitalization in Sheffield, Doncaster, and Rotherham by 2027
• Liverpool City Region: £1.6 billion for faster connections to Liverpool John Lennon Airport, Everton Stadium, and Anfield, plus new bus services in Stens and Wirral
• North East: £1.8 billion to extend the tram line from Newcastle to Sunderland via Washington
• West of England: £800 million for rail infrastructure improvements, increased train frequency, and mass transit connections between Bristol, Bath, South Gloucestershire, and North Somerset
• Tees Valley: £1 billion, including a £60 million platform extension at Middlesbrough station
• East Midlands: £2 billion to improve road, rail, and bus connectivity between Derby and Nottingham

Reeves acknowledged the necessity of difficult choices, noting that not all departments would receive their full requested budgets and that other “good things” had to be set aside due to fiscal constraints. She emphasized that a more prosperous Britain cannot rely on a handful of regions advancing while others lag behind, advocating for a new economic model driven by nationwide investment.

The Spending Review, scheduled for June 11, will set departmental budgets for the next three years and investment budgets for the next four. While the transport package is a cornerstone of the government’s renewal agenda, Reeves faces scrutiny over the broader fiscal outlook, including concerns about inheritance tax reforms potentially reducing the UK economy by £14.8 billion, rising borrowing costs, and administrative challenges.

The Labour government, led by Prime Minister Keir Starmer, is under pressure to demonstrate its ability to enhance public services and infrastructure following local election setbacks. The transport investment is seen as a key step in addressing regional disparities and fostering long-term economic growth.