New £4.7bn local transport fund announced as part of Network North

The Government has announced that the North will receive £2.5 billion and the Midlands £2.2bn from a new local transport fund.

The investment has been announced as part of Network North - to improve local transport connections.

Prime Minister Rishi Sunak said: “We have a clear plan to level up our country with greater transport links that people need and deliver the right long-term change for a brighter future.

“Through reallocating HS2 funding, we’re not only investing billions of pounds directly back into our smaller cities, towns and rural areas across the North and Midlands, but we are also empowering their local leaders to invest in the transport projects that matter most in their communities - this is levelling up in action.  

“The local transport fund will deliver a new era of transport connectivity. This unprecedented investment will benefit more people, in more places, more quickly than HS2 ever would have done, and comes alongside the billions of pound worth of funding we’ve already invested into our roads, buses and local transport services across the country.”

The cash will be made available from 2025 to give local authorities enough time to develop their funding plans and prepare to hit the ground running to ensure they are delivered as soon as possible.

With the funding delivered over the next seven years, up to 2032, ministers say it will be spent on a range of transport improvements, including building new roads and improving junctions; installing or expanding mass transit systems; improving roads by filling in potholes and better street lighting for personal safety; and increasing the number of EV charge points.

Transport secretary Mark Harper said: “Today’s £4.7 billion investment is truly game-changing for the smaller cities, towns, and rural communities across the North and the Midlands and is only possible because this Government has a plan to improve local transport and is willing to take tough decisions like reallocating funding from the second phase of HS2.  

“This funding boost will make a real difference to millions of people, empowering local authorities to drive economic growth, transform communities, and improve the daily transport connections that people rely on for years to come.”  

Today’s funding is directed to the North and Midlands because the majority of HS2 savings are specifically from those regions.

The local transport fund is also specifically for communities in the North and Midlands which are outside city regions which receive City Region Sustainable Transport Settlements (CRSTS). 

The North-East is separately receiving £3.7bn from CRSTS from now until 2032, which includes an uplift of more than £1bn from Network North.

Lord Patrick McLoughlin, chair of Transport for the North (TfN), said: “We welcome this funding for our local transport areas as a sign of progress towards transforming the north to a more inclusive, sustainable and better-connected region. 

“By having greater clarity on the funding that’s available, and consolidating funding streams, it helps remove inertia and accelerates delivery on the ground. 

“TfN look forward to working with government and local leaders, because we know that the travelling public will get better results the more locally the decisions are made on how those services should be provided.” 

Maria Machancoses, chief executive of Midlands Connect, added: “This funding represents a significant investment in our region’s infrastructure.

“The Midlands contributes more than £90bn to the UK economy, and to boost that even more, we need reliable transport networks and investment in new technology.  

“We welcome this announcement and the improvements it will bring for our communities and businesses across the Midlands, and we will continue to work with Government and support our local authorities, to ensure these vital Network North transport upgrades are delivered.”  

Ann Carruthers, chair of Adept’s transport and connectivity board, said that the funding will help deliver a raft of transport improvements including everything from new roads, active travel and road safety schemes, maintenance improvements to electric vehicle (EV) charging and transport hubs. 

“A key factor in getting the most out of this money will be sufficient revenue funding to support the delivery of this new transport investment,” she added.

“Amid huge local government financial challenges, this will really help us deliver better connected places.”  

Full breakdown of funding allocations

* Numbers may not sum to totals due to rounding