Rachel Reeves announces multi-billion pound transport boost for North West
Greater Manchester is set to receive a £2.5 billion boost to extend its tram network and build new stops in Manchester, Bury and Oldham, as part of a major transport investment announced by Chancellor Rachel Reeves.
In a speech in Manchester, the Chancellor confirmed the funding is part of a wider £15.6 billion package for metro areas across the North and Midlands.
The Liverpool City Region is set to receive £1.6 billion to invest in local bus, train, and tram networks.
It includes money for new mass transit systems, tram upgrades, and metro extensions aimed at transforming public transport outside of London and the South East.
The announcement also marks a major shift in how decisions about transport spending are made.
Reeves is expected to scrap parts of the Treasury's 'Green Book' rules that have been criticised for favouring the South, in favour of a fairer approach that takes regional needs into account.
Labour says the changes will help ensure every region 'gets a fair hearing' when it comes to funding decisions, with the North West set to benefit directly.
The funding is part of the Government's upcoming spending review, which will outline how departments spend over the next four years. Wednesday's announcement is one of the first major commitments from the review.
Transport Secretary Heidi Alexander called it a 'watershed moment' for regions like Greater Manchester, saying it will improve access to jobs and support economic growth.
Some of the schemes receiving backing were originally proposed under the former government's 'Network North' plan, which was announced following the cancellation of the HS2 leg to Manchester.
Labour has reviewed those plans, and this week's confirmation signals which will now move forward. Further details of the spending review are due on June 11.
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The Herald Scotland
31 minutes ago
- The Herald Scotland
North missed £140bn of transport investment during last government
It reached the figure, which it said was enough to build seven Elizabeth Lines, by considering the amount of spending per person across the different English regions over that period. While England as a whole saw £592 spent per person each year, London received double that amount with £1,183 spent per person, the IPPR said. The entire North region saw £486 spent per person, with the North East and North West seeing £430 and £540 spent per person respectively. This amounted to £140 billion of missed investment for the North, more than the entire £83 billion estimate of capital spending on transport in the region since 1999/2000, according to the analysis. The region with the lowest amount of investment over the period was the East Midlands with just £355 spent per person. Among the most divisive transport investment projects for the previous government was the HS2 rail project, which was axed north of Birmingham in October 2023. Then-prime minister Rishi Sunak pledged to 'reinvest every single penny, £36 billion, in hundreds of new transport projects in the North and the Midlands', including improvements to road, rail and bus schemes. Earlier this week, Chancellor Rachel Reeves announced a £15.6 billion package for mayoral authorities to use on public transport projects across the North and Midlands ahead of the spending review. It is expected to include funding to extend the metros in Tyne and Wear, Greater Manchester and the West Midlands, along with a renewed tram network in South Yorkshire and a new mass transit system in West Yorkshire. Rachel Reeves has set out plans for new transport investment in the North and Midlands (Peter Byrne/PA) Marcus Johns, senior research fellow at IPPR North, said: 'Today's figures are concrete proof that promises made to the North over the last decade were hollow. It was a decade of deceit. 'We are 124 years on from the end of Queen Victoria's reign, yet the North is still running on infrastructure built during her rein – while our transport chasm widens. 'This isn't London bashing – Londoners absolutely deserve investment. But £1,182 per person for London and £486 for northerners? The numbers don't lie – this isn't right. 'This Government have begun to restore fairness with their big bet on transport cash for city leaders. 'They should continue on this journey to close this investment gap in the upcoming spending review and decades ahead.' Former Treasury minister Lord Jim O'Neill said: 'Good governance requires the guts to take a long-term approach, not just quick fixes. So the Chancellor is right in her focus on the UK's long-standing supply-side weaknesses – namely our woeful productivity and weak private and public investment. 'Backing major infrastructure is the right call, and this spending review is the right time for the Chancellor to place a big bet on northern growth and begin to close this investment chasm. 'But it's going to take more than commitments alone – she'll need to set out a transparent framework for delivery.' Andy Burnham, Mayor of Greater Manchester, said: 'For too long, the North of England has been treated as a poor relation to the South when it comes to government spending on transport infrastructure, and this analysis makes stark reading – exposing the vast scale of underfunding over many years. 'The Chancellor's announcement of £2.5 billion funding for transport in Greater Manchester will be a game-changer for our city-region, enabling us to expand the Bee Network, and deliver the UK's first, zero emission, integrated, public transport system by 2030. 'We have also made the case for a new Liverpool-Manchester railway, which would further rebalance infrastructure investment, and could boost the UK economy by £90 billion by 2040.'
South Wales Argus
34 minutes ago
- South Wales Argus
North missed £140bn of transport investment during last government
Independent analysis by think tank the Institute for Public Policy Research (IPPR) looked at Treasury figures between 2009/10 and 2022/23, during which time the Conservatives were in power. It reached the figure, which it said was enough to build seven Elizabeth Lines, by considering the amount of spending per person across the different English regions over that period. While England as a whole saw £592 spent per person each year, London received double that amount with £1,183 spent per person, the IPPR said. The entire North region saw £486 spent per person, with the North East and North West seeing £430 and £540 spent per person respectively. This amounted to £140 billion of missed investment for the North, more than the entire £83 billion estimate of capital spending on transport in the region since 1999/2000, according to the analysis. The region with the lowest amount of investment over the period was the East Midlands with just £355 spent per person. Among the most divisive transport investment projects for the previous government was the HS2 rail project, which was axed north of Birmingham in October 2023. Then-prime minister Rishi Sunak pledged to 'reinvest every single penny, £36 billion, in hundreds of new transport projects in the North and the Midlands', including improvements to road, rail and bus schemes. Earlier this week, Chancellor Rachel Reeves announced a £15.6 billion package for mayoral authorities to use on public transport projects across the North and Midlands ahead of the spending review. It is expected to include funding to extend the metros in Tyne and Wear, Greater Manchester and the West Midlands, along with a renewed tram network in South Yorkshire and a new mass transit system in West Yorkshire. Rachel Reeves has set out plans for new transport investment in the North and Midlands (Peter Byrne/PA) Marcus Johns, senior research fellow at IPPR North, said: 'Today's figures are concrete proof that promises made to the North over the last decade were hollow. It was a decade of deceit. 'We are 124 years on from the end of Queen Victoria's reign, yet the North is still running on infrastructure built during her rein – while our transport chasm widens. 'This isn't London bashing – Londoners absolutely deserve investment. But £1,182 per person for London and £486 for northerners? The numbers don't lie – this isn't right. 'This Government have begun to restore fairness with their big bet on transport cash for city leaders. 'They should continue on this journey to close this investment gap in the upcoming spending review and decades ahead.' Former Treasury minister Lord Jim O'Neill said: 'Good governance requires the guts to take a long-term approach, not just quick fixes. So the Chancellor is right in her focus on the UK's long-standing supply-side weaknesses – namely our woeful productivity and weak private and public investment. 'Backing major infrastructure is the right call, and this spending review is the right time for the Chancellor to place a big bet on northern growth and begin to close this investment chasm. 'But it's going to take more than commitments alone – she'll need to set out a transparent framework for delivery.' Andy Burnham, Mayor of Greater Manchester, said: 'For too long, the North of England has been treated as a poor relation to the South when it comes to government spending on transport infrastructure, and this analysis makes stark reading – exposing the vast scale of underfunding over many years. 'The Chancellor's announcement of £2.5 billion funding for transport in Greater Manchester will be a game-changer for our city-region, enabling us to expand the Bee Network, and deliver the UK's first, zero emission, integrated, public transport system by 2030. 'We have also made the case for a new Liverpool-Manchester railway, which would further rebalance infrastructure investment, and could boost the UK economy by £90 billion by 2040.'
South Wales Argus
34 minutes ago
- South Wales Argus
Labour MPs in call for benefits U-turn after change to winter fuel payment cut
Ms Reeves' £1.25 billion plan unveiled on Monday will see automatic payments worth up to £300 given to pensioners with an income less than £35,000 a year. It followed last year's decision to strip pensioners of the previously universal scheme, unless they claimed certain benefits, such as pension credit. Nadia Whittome, the Labour MP for Nottingham East, warned ministers they risked making a 'similar mistake' if they tighten the eligibility criteria for personal independence payments, known as Pip. Leeds East MP Richard Burgon called on pensions minister Torsten Bell to 'listen now' so that backbenchers can help the Government 'get it right'. In her warning, Ms Whittome said she was not asking Mr Bell 'to keep the status quo or not to support people into work' and added: 'I'm simply asking him not to cut disabled people's benefits.' Nadia Whittome (James Manning/PA) The pensions minister, who works in both the Treasury and Department for Work and Pensions, replied that the numbers of people receiving Pip is set to 'continue to grow every single year in the years ahead, after the changes set out by this Government'. In its Pathways to Work green paper, the Government proposed a new eligibility requirement, so Pip claimants must score a minimum of four points on one daily living activity, such as preparing food, washing and bathing, using the toilet or reading, to receive the daily living element of the benefit. 'This means that people who only score the lowest points on each of the Pip daily living activities will lose their entitlement in future,' the document noted. Mr Burgon told the Commons: 'As a Labour MP who voted against the winter fuel payment cuts, I very much welcome this change in position, but can I urge the minister and the Government to learn the lessons of this and one of the lessons is, listen to backbenchers? 'If the minister and the Government listen to backbenchers, that can help the Government get it right, help the Government avoid getting it wrong, and so what we don't want is to be here in a year or two's time with a minister sent to the despatch box after not listening to backbenchers on disability benefit cuts, making another U-turn again.' Mr Bell replied that it was 'important to listen to backbenchers, to frontbenchers'. Opposition MPs cheered when the minister added: 'It's even important to listen to members opposite on occasion.' Liberal Democrat MP Mike Martin warned that 'judging by the questions from his own backbenchers, it seems that we're going to have further U-turns on Pip and on the two-child benefit cap'. The Tunbridge Wells MP asked Mr Bell: 'To save his colleagues anguish, will he let us know now when those U-turns are coming?' The minister replied: 'What Labour MPs want to see is a Labour Government bringing down child poverty, and that's what we're going to do 'What Labour MPs want to see is a Government that can take the responsible decisions, including difficult ones on tax and on means testing the winter fuel payment so that we can invest in public services and turn around the disgrace that has become Britain's public realm for far too long.' Conservative former work and pensions secretary Esther McVey had earlier asked whether the Chancellor, 'now that she and the Government have got a taste for climbdowns', would 'reverse the equally ridiculous national insurance contribution (Nic) rises, which is destroying jobs, and the inheritance tax changes, which is destroying farms and family businesses'. Mr Bell said: 'This is a party opposite that has learned no lessons whatsoever, that thinks it can come to this chamber, call for more spending, oppose every tax rise and expect to ever be taken seriously again – they will not.' Labour MP Rebecca Long-Bailey pressed the Government to make changes to the two-child benefit cap, which means most parents cannot claim for more than two children. 'It's the right thing to do to lift pensioners out of poverty, and I'm sure that both he and the Chancellor also agree that it's right to lift children out of poverty,' the Salford MP told the Commons. 'So can he reassure this House that he and the Chancellor are doing all they can to outline plans to lift the two-child cap on universal credit as soon as possible?' Mr Bell replied: 'All levers to reduce child poverty are on the table. 'The child poverty strategy will be published in the autumn.' He added: 'If we look at who is struggling most, having to turn off their heating, it is actually younger families with children that are struggling with that. 'So she's absolutely right to raise this issue, it is one of the core purposes of this Government, we cannot carry on with a situation where large families, huge percentages of them, are in poverty.'
