UK injects $21 billion into city transport schemes

  • June 9, 2025
  • William Payne

The UK finance minister has announced £15.6 billion (US$ 21.2 billion) of new funding for cities across the North, Midlands and South West of England.

The new funds will be allocated for the modernisation and expansion of local transport in city regions in the country’s North, Midlands and South West.

The financing represents a doubling of funds available to city regions in those areas.

A particular winner is Greater Manchester, the “UK’s second city”. It receives an additional £2.5 billion (US$3.4 billion), which will be allocated for the expansion of the city’s Bee smart transport network, which is seen as a model for city-wide smart transport systems across the UK.

A city region is a UK local government top tier incorporating a major city and its surrounding region representing the local metropolitan and transport economy.

Examples of how the funding will affect city transport schemes in the North of England include a Metro extension that will link the city of Washington in County Durham to the cities of Newcastle and Sunderland in the counties of Northumberland and Tyne and Wear; a light rail system across the cities of Rotherham and Sheffield in South Yorkshire; the building of the West Yorkshire Mass Transit system; and an expansion of the Birmingham mass transit system across East Birmingham and the adjoining city of Solihull in the West Midlands.

The Government has ordered a review of how funding is awarded to English regions. The aim is to balance public investment across the regions and ensure economic renewal in regions of the English North, South West and Midlands.