The Chancellor has announced the largest ever investment in city region transport, with £15.6 billion allocated for local transport projects across England over the next five years.

Rachel Reeves made the announcement in Greater Manchester, stating that "a Britain that is better off cannot rely on a handful of places forging ahead of the rest of the country". The funding represents more than double the real-terms increase in capital spending on local transport in city regions by 2029/30 compared with 2024/25.

The investment will fund buses, trams and local train infrastructure across the North, Midlands and South West. Transport Secretary Heidi Alexander described it as "a watershed moment" for improving transport in these regions. 

Projects include the Metro extension linking Washington to Newcastle and Sunderland, renewal of South Yorkshire's tram network in Sheffield and Rotherham, and transformation of Greater Manchester's Metrolink network. The West Yorkshire Mass Transit system will be fully integrated with cycling, walking, bus and rail services.

The Chancellor said the government would take a "step change" in how it evaluates regional investment following a Treasury Green Book review. The full review conclusions will be published on 11th June alongside the wider Spending Review.

Industry leaders welcomed the announcement. Henri Murison from the Northern Powerhouse Partnership said the investment would be "critical to driving regional growth", while Ben Plowden from Campaign for Better Transport called it essential for "unlocking opportunity and driving inclusive economic growth".

The announcement comes ahead of next week's Spending Review, where the government will outline its investment priorities for what it calls the "renewal of Britain".

Mayoral Breakdown of Transport for City Regions Funding:

• West Midlands - £2.4 billion: Metro extension connecting Birmingham City Centre to new sports quarter
• Greater Manchester - £2.5 billion: Metrolink expansion with new stops in Bury, Manchester and Oldham, plus 1,000 new electric buses
• West Yorkshire - £2.1 billion: West Yorkshire Mass Transit development starting by 2028
• East Midlands - £2.0 billion: New mass transit system connecting Derby and Nottingham
• North East - £1.8 billion: Metro extension linking Newcastle and Sunderland via Washington
• Liverpool City Region - £1.6 billion: Bus rapid transit routes and new fleet for franchised bus network
• South Yorkshire - £1.5 billion: £530m for tram network renewal and £350m for bus reform
• Tees Valley - £1.0 billion: Platform 3 extension at Middlesbrough station
• West of England - £0.8 billion: Rail infrastructure improvements and mass transit development