Industry leaders, parliamentarians and journalists alike waited with bated breath as the Chancellor outlined her Summer Spending Review in the Commons this afternoon. For months now, speculation on how exactly Reeves would lay out day-to-day spending until 2028–29 and capital spending until 2029–30 has dominated industry chatter. In April, we predicted a more cross-departmental approach boosted by high-tech shared dashboards and ‘mission groups’ – but what of that, if anything, can we see in today’s announcement?
Regional transport investment: a national priority
For those of us in the transport sector, much anticipation had been tempered by last week’s announcement of a £15.6 billion package of funding for transport projects in towns and cities outside of London and the Southeast. This package for Mayoral Authorities includes funding to extend the metros in Tyne and Wear, Greater Manchester and the West Midlands, funding to renew the tram network in South Yorkshire, and delivery of new mass transit systems in West Yorkshire. This substantial investment demonstrates the government’s commitment to addressing regional connectivity needs across the country, ensuring that communities nationwide have access to quality transport infrastructure.
Transformative projects across key regions
The five-year funding settlements will enable regional mayors to deliver transformative transport projects across their areas. In West Yorkshire, the Mayor will be able to progress the West Yorkshire Mass Transit system, creating a fully integrated network that seamlessly connects cycling, walking, bus and rail services to deliver faster, more accessible and reliable journeys throughout the region. Meanwhile, the West Midlands Mayor can advance plans for a metro extension reaching Birmingham’s sports quarter, marking the first phase of ambitious mass transit connections between East Birmingham and North Solihull. The region also benefits from funding for the Midlands Rail Hub, described by the Chancellor as the “region’s biggest and most ambitious rail improvement scheme for generations”. While this doesn’t appear to cover the full £1.75 billion package, it’s expected to fund the completion of a detailed business case and crucial upgrades to Kings Norton station platforms, which will boost train frequencies along the cross city line from Bromsgrove and Barnt Green through to Lichfield via key stops including Longbridge, Selly Oak, Five Ways, Erdington and Sutton Coldfield. In Greater Manchester, the settlement allows for a comprehensive transformation of the Metrolink tram network, including new stations in Bury, north Manchester and Oldham, alongside extending the system into Stockport town centre.
Major rail upgrades and connectivity improvements
The Transpennine Route Upgrade has been granted a £3.5 billion boost – welcome news for commuters travelling between Manchester and Leeds – and Reeves has promised to ‘take forward [her] ambitions’ for Northern Powerhouse Rail. This represents significant investment in regional connectivity, building on the foundation of improved transport links across the country. Details are pending, but hopeful rumours of Liverpool-Manchester rail link are circulating – which has been on the wishlist of the Greater Manchester and Liverpool mayors since HS2’s northern leg was axed by the previous Conservative government.
Continuing London’s infrastructure renewal
To the capital, where Reeves has announced a £2.2bn four-year settlement for Transport for London’s capital renewals programme, following the same model as Network Rail and National Highways. This funding will complete the rollout of new trains on the Piccadilly line and DLR, install new signalling across 40 per cent of the Tube network, and allow TfL to procure a new tram fleet. There’s also money to push forward with discussions on new Bakerloo line trains and tackle the essential job of renewing London’s ageing roads, tunnels and flyovers. Given that millions of people rely on London’s transport network every day – and its importance to the wider UK economy – this continued investment makes sense alongside the regional projects happening across the country.
Welsh transport development
Wales also has reason to celebrate, with £445 million portioned out for new rail projects in north and south Wales. This will go towards fixing level crossings, building new stations and upgrading existing lines, and is a combination of direct funding and cash for the Welsh government. Cardiff, Newport, and Monmouthshire are all set to see the new stations. The Senedd will no doubt be pleased to see both the capital city given the big-ticket look and feel it deserves and the rural connectivity it needs – especially since Plaid Cymru’s accusation earlier this week that the UK government had “[moved] the goal posts” by reclassifying the Oxford to Cambridge rail project as an England and Wales scheme. Incidentally, that project is set to see a £2.5bn boost to ensure delivery continues at pace – though it’s worth noting the scale of this investment when weighed against other connectivity priorities across the country.
Local transport and community connectivity
Looking locally, £2.3 billion has been invested in the Local Transport Grant for local transport improvements including bus lanes, cycleways and congestion improvement measures in places outside of those areas receiving Transport for City Regions settlements. This represents a fourfold increase in funding in 2029-30 compared to 2024-25 – a genuinely impressive commitment that recognises how vital local transport is for community connectivity and social mobility. The £3 bus fare cap has also been extended by over a year until March 2027, covering 5,000 bus routes. This is exactly the kind of policy that makes public transport accessible to everyone.
Leading the charge on transport decarbonisation
The standout commitment for us at JFG Communications, however, is the £2.6 billion allocated to transport decarbonisation as part of the Government’s Clean Energy mission. This substantial investment demonstrates a comprehensive approach to cutting transport emissions, with £1.4 billion earmarked for electric vehicle adoption across all vehicle types, £400 million for charging infrastructure, and £616 million for walking and cycling networks. The package also extends the Advanced Fuels Fund to 2029-30 for sustainable aviation fuel production. This multi-faceted approach represents a promising foundation for sustainable transport transformation, and with the Infrastructure Strategy still to come, it will be crucial to see how these commitments translate into the longer-term framework needed for delivery.
To read the Spending Review in full, please click here.
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