Reeves Announces £15billion for Transport Outside South-East
Chancellor Rachel Reeves will announce a sweeping £15.6 billion investment in public transport across England in a landmark speech on Wednesday, promising to break with Treasury rules long accused of favouring London and the South East.
Speaking in Manchester, Reeves will argue that Britain can no longer rely on a “handful of places forging ahead” while others fall behind. Her speech will champion a new economic model that prioritises investment across all regions, with significant upgrades planned for transit systems in the North and Midlands.
The funding package includes major projects such as metro extensions in Tyne and Wear, Greater Manchester, and the West Midlands, a renewed tram system for South Yorkshire, and the development of new mass transit lines in West Yorkshire and the East Midlands.
The West Midlands will receive £2.4 billion to expand Birmingham’s metro to a new sports district, while Greater Manchester is set to gain £2.5 billion for additional tram stops and a Stockport extension. South Yorkshire will benefit from £1.5 billion, including £530 million to overhaul its trams. In West Yorkshire, £2.1 billion will support the launch of a mass transit system by 2028. The East Midlands will receive £2 billion to plan a new network linking Derby and Nottingham.
While the focus is on rebalancing regional disparities, Reeves is expected to confirm changes to the Treasury’s “Green Book” — the framework for evaluating public investment — during a June 11 spending review. Critics, including Labour MP and Treasury Committee member Jeevun Sandher, have long argued that the existing rules are skewed in favour of the South East. Reeves will say reforming the system will help ensure every region gets a “fair hearing” on funding.
The announcement also comes amid political pressure in “Red Wall” constituencies, where Labour faces strong competition from Reform UK.
Despite the shift in focus, ministers are still expected to allocate over £1 billion of public funds to the £10 billion Lower Thames Crossing — a major infrastructure project linking Kent and Essex. According to the Financial Times, the funding is intended to unlock private investment in the road tunnel project, although it falls short of the £1.9 billion initially requested by National Highways. Construction is expected to begin within the next year.
Elsewhere, the West of England will receive £800 million, including £200 million for transit links between Bristol, Bath, South Gloucestershire, and North Somerset.
Writing in the Manchester Evening News, Prime Minister Sir Keir Starmer said the funding package marks a decisive move away from “hoarding power in Westminster” and toward empowering communities. “We will not get the renewal we need by focusing only on the South East,” he wrote. “For too long, proud places across the country have been neglected and left behind.”
Transport Secretary Heidi Alexander hailed the announcement as a “watershed moment” for the North and Midlands, promising the improvements would boost access to jobs, support economic growth, and raise quality of life.
Some of the projects, including the West Yorkshire mass transit network, were originally proposed under former Prime Minister Rishi Sunak’s “Network North” initiative, intended to offset the cancellation of the HS2 leg north of Birmingham.
The Chancellor’s announcement signals a new direction in economic policy — one that places regional equity and infrastructure at its heart.