The Chartered Institute of Logistics and Transport UK (CILT UK) has analysed Chancellor Rachel Reeves’ recent Comprehensive Spending Review, highlighting key funding commitments that impact our sector. The review sets out significant investments designed to improve connectivity, support regional growth, and a push on low carbon infrastructure building and Green Book reforms.
Local and Regional Transport Investment
£15.6billion by 2031–32 for local transport projects in England’s nine city regions
This substantial funding aims to improve urban transport infrastructure across major city regions such as Manchester, Birmingham, and Leeds, enhancing public transport services and reducing congestion.£2.3billion from 2026–27 to 2029–30 for local transport improvements outside the nine city regions
Investment will also target smaller towns and rural areas, helping to bridge the transport gap beyond major cities and fostering more inclusive regional development.
Major Rail Projects
£2.5billion for continued delivery of East-West Rail (Oxford to Cambridge)
Continued funding will support the development of the East-West Rail link, a key project to boost connectivity between Oxford, Cambridge, and surrounding areas.Funding to advance Northern Powerhouse Rail
The government has pledged further investment to progress the Northern Powerhouse Rail network, which seeks to strengthen rail connections between northern English cities.Funding for upgrades to Cardiff Central station
Investment will improve Cardiff Central station’s capacity and passenger experience, supporting increased demand in Wales.Continued investment in the TransPennine Route Upgrade (Manchester to Leeds)
This ongoing project will receive additional funding to enhance journey times and service reliability across the critical Manchester-Leeds corridor.Funding to progress the Midlands Rail Hub (Birmingham and West Midlands connections)
Support will continue for the Midlands Rail Hub, aimed at improving rail links within Birmingham and the wider West Midlands area.
£3 bus fare ap will be extended until 2027
The government increased the price cap on single bus fares from £2 to £3 on January 1, 2025, and it was due to remain in place until December 31, 2025. However, the Chancellor has announced that the cap will now remain in place until at least March 2027.
Decarbonisation
The Spending Review places considerable importance on low-carbon energy infrastructure and energy security.
Significant investments include: £14.2billion allocated for the Sizewell C nuclear facility.
£2.5billion designated for small modular reactors (SMRs).
£2.5billion earmarked for nuclear fusion technology..
These investments are further supplemented by £13.2 billion for the Warm Homes Plan, as outlined in Labour’s manifesto, which seeks to enhance energy efficiency and lower household expenses.
CILT(UK) comment on skills in the context of the Spending Review
CILT(UK) welcomes the annual £1.2 billion increase in skills funding for young people by 2028/29 and funding for employment support to increase to £3.5bn by 2028/29, as outlined in the Government’s Spending Review 2025.
The £113bn in capital investment, including for transport (£15bn), the Affordable Homes Programme (£39bn) and nuclear energy (£30bn) will all require additional logistics and transport expertise to support delivery in these areas.
The same applies to the additional day-to-day spending for defence increasing by £11bn by 2027/28 and £29bn annually for the National Health Service (NHS) from 2023/24 – 2028/29. The NHS-CILT(UK) Learning and Development Academy - CILT(UK) is an example of the important role that logistics training and professional development plays across sectors.
In the Government’s forthcoming Post-16 Education and Skills Strategy, we look forward to details of the proposed flexibilities within the Growth and Skills Levy to support non-Apprenticeship provision (including logistics and transport qualifications and training), and of careers information, advice and guidance to engage both young people and adults to upskill and reskill in priority investment areas, such as passenger transport and infrastructure.
Green Book reforms
The government plans to implement a "new approach" by amending the Green Book and utilising it to provide objective, transparent recommendations on public investment nationwide.
Place-based business cases will be introduced, integrating the necessary initiatives to fulfil the objectives of a particular location.
With a new edition set for release at the start of next year, it has committed to simplifying and shortening both the Green Book and the accompanying business case guides.
The modifications, advocated by Greater Manchester mayor Andy Burnham and Liverpool city region mayor Steve Rotheram, are anticipated to redirect public spending decisions from London.