UK government unveils £15.6 billion investment in public transport across England (Manchester to procure 1,000 e-buses)

The UK Government has announced a landmark £15.6 billion funding package for local transport in city regions across England, marking what it describes as the “biggest ever investment” of its kind. The five-year capital settlement, confirmed ahead of the upcoming Spending Review, aims to empower regional authorities to deliver mass transit projects, improve connectivity, and stimulate economic growth.

The funding, which more than doubles capital investment in city region transport compared to 2024/25 levels, will support large-scale projects in areas including the North East, West Midlands, Greater Manchester, South Yorkshire, West Yorkshire, and the East Midlands. Each Mayoral Combined Authority will receive a multi-year settlement, with some funding brought forward to 2025/26 to accelerate implementation.

Manchester to procure 1,000 zero emission buses

Among the headline projects, as mentioned in UK government’s press release, Greater Manchester will receive £2.5 billion, enabling expansion of the Metrolink tram network—including extensions to Bury, Oldham, and Stockport—and supporting the rollout of a fully electric Bee Network by 2030, with 1,000 new zero-emission buses. Earlier this year, the government confirmed that Greater Manchester is set to witness the introduction of 117 new lower and zero-emission buses in a £86 million scheme to help clean up the region’s air. 100 electric buses for the region were already ordered in late 2022 and are now in operation (with first units handed over in mid-2023).

The just-unveiled plan, reads a press note by Transport for Greater Manchester, builds on current progress, including the opening of Greater Manchester’s first all-electric bus depot in Ashton, which now supports over 80 zero-emission buses across 14 routes. In addition to vehicle procurement, the funding will support the integration of local rail lines into the Bee Network, construction of new tram lines and stops, and development of modern interchanges — laying the foundation for greener mobility, stronger regional growth, and cleaner air across Greater Manchester.

Region benefitting from the public transport funding package

The West Midlands has been allocated £2.4 billion, with plans to extend the metro line to Birmingham’s sports quarter, laying the foundation for a new mass transit route between East Birmingham and North Solihull. West Yorkshire will use its £2.1 billion allocation to begin construction of its Mass Transit system by 2028, with the first services targeted for the mid-2030s. Upgrades to six bus corridors and new bus stations in Bradford and Wakefield are also planned.

South Yorkshire will receive £1.5 billion, including £530 million for the renewal of the Sheffield Supertram fleet and infrastructure, and £350 million to transition bus services to a franchised model across the region by 2029.

The North East will use its £1.8 billion investment to extend the Metro system from Newcastle to Sunderland via Washington, enhancing access to key employment areas.

The East Midlands is set to receive £2.0 billion to design and develop a new mass transit system linking Derby and Nottingham, with an integrated focus on road, rail, and bus infrastructure.

Additional allocations include £1.6 billion for Liverpool City Region, £1.0 billion for Tees Valley, and £0.8 billion for the West of England. The investments cover both new transit infrastructure and renewal of existing systems, with a focus on modal integration and emissions reduction.

Transport Secretary Heidi Alexander commented that this “marks a watershed moment on our journey to improving transport across the North and Midlands – opening up access to jobs, growing the economy and driving up quality of life as we deliver our Plan for Change. For too long, people in the North and Midlands have been locked out of the investment they deserve. With £15.6bn of Government investment, we’re giving local leaders the means to drive cities, towns and communities forward, investing in Britain’s renewal so you and your family are better off”.

Ben Plowden, Chief Executive of Campaign for Better Transport, said: “It’s great to see the Government investing in the local transport infrastructure that will tangibly improve the lives of millions across our city regions and particularly good to see trams being prioritised in several areas. Fast, frequent and reliable public transport is essential to unlocking opportunity and driving inclusive economic growth. We hope to see similar commitments to revenue funding in next week’s Spending Review, alongside support for local authorities to plan, deliver and run the high-quality transport services their communities need”.