Chancellor unveils £1.8bn funding package to improve transport networks across the region

The chancellor Rachel Reeves has today (June 4) confirmed £1.8bn of investment in North East transport as part of the Government’s Plan for Change.

The investment is the largest single package of investment ever made in the North East’s transport networks.

£1.8bn is going to be invested in the region's transport network.placeholder image
£1.8bn is going to be invested in the region's transport network. | Submitted

In a speech in Manchester, the Chancellor made the announcement which she described as the biggest ever investment in buses, trams and local train infrastructure in city regions as she promised the “renewal of Britain to make all parts of the country better off”.

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Around £900m of the money will be invested in the long awaited extension of the Tyne & Wear Metro to include Washington, with the first trains set to run in 2033.

Washington is the fourth largest town in England currently not connected to the rail network.

The remaining money will be invested in highways maintenance, the roll out of safe and high-quality walking and cycling routes, hundreds of new EV charging points throughout towns and villages, and new bus priority measures to make journey times more reliable.

The funding will also take forward the mayor’s creation of an Angel Network, a fully integrated sustainable public transport network including contactless travel across bus, Metro and rail, and improvements to safety and accessibility where people wait, from bus stops and Metro stations through to large interchanges.

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£13.92m of the money is going to be used to improve bus shelters and Metro stations across the region.

Commenting on the news, North East Mayor Kim McGuinness said: “When I was elected Mayor I promised voters I would extend the Metro and now 12 months on I can announce that we have made that happen.

“I am thrilled to say we can now get on with the job of building the first new Metro line for 30 years, at last connecting Washington to the network and linking tens of thousands of people to new jobs and opportunity in our growing advanced manufacturing sector.

“Today’s announcement is a game-changing moment for the people of our region, who can now look forward to a truly world-class integrated public transport network, safer walking and cycling routes throughout our towns and cities and a massive acceleration on our journey to an EV future.”

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Rachel Anderson, Assistant Director, Policy, North East Chamber of Commerce, added: “This investment is a welcome signal that the government is listening to the North East and acting on long-standing calls for greater infrastructure investment outside London.

“Upgrading our local transport networks, including progress on the Washington Metro link, is vital to connecting people to opportunity and driving regional growth.

“As we set out in our comprehensive spending review submission to the Chancellor earlier this year, long-term, regionally led funding must remain a central feature of economic policy.

“The North East is one of the UK’s few net exporting regions and has consistently delivered sustainable growth, and continued investment in our infrastructure is essential to maintaining that momentum, not just for our region, but for the country as a whole.

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“We now look forward to working with local and national partners to ensure this funding delivers real and lasting benefits for businesses and communities across our region.”

The chancellor has announced the funding as part of a £15.6 billion package for local transport projects in England’s city regions – including South Yorkshire, North East, East Midlands and Tees Valley.

The funding represents a more than double real-terms increase in capital spending on local transport in city regions by 2029/30 compared with 2024/25.

Transport Secretary Heidi Alexander, said: “Today 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.

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"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."

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