British Finance Minister Rachel Reeves on Wednesday pledged £15.6 billion ($21.1 billion) to upgrade transport infrastructure in cities beyond London, marking a major step in addressing long-standing regional disparities.
Speaking in Rochdale, northwest England, Reeves unveiled the first commitments from her upcoming June 11 Spending Review, which will outline government department budgets through 2029. This is the most comprehensive multi-year review since 2015, aside from a COVID-specific one in 2021.
The announcement comes as Prime Minister Keir Starmer’s Labour government seeks to demonstrate tangible progress in public services and infrastructure after poor results in recent local elections. Cities outside London have lagged in productivity, something the OECD and others link to outdated, insufficient transport networks.
“A more prosperous Britain can’t depend on just a few areas pulling ahead,” Reeves said, criticising past strategies that funnelled investment into regions offering the highest financial returns. She argued that this approach had deepened the economic divide between regions.
The funding, which covers the period from 2027/28 to 2031/32, includes significant projects in the West Midlands, Greater Manchester, northeast England, and South Yorkshire. It also includes West Yorkshire’s first mass transit system, serving an urban area of 2.3 million people.
Much of the funding had originally been promised by the former Conservative government after it scrapped part of a north-south high-speed rail project. However, local authorities had been waiting for formal approval to proceed with the new plans.
Reeves acknowledged the difficult budgetary choices facing the new government, noting that some worthwhile proposals from fellow ministers were turned down due to fiscal constraints.
“There are good things I’ve had to say no to because it’s crucial to keep control of public finances,” she said. While she confirmed an increase in police spending, she did not provide further details.
The Institute for Fiscal Studies described the Spending Review as potentially “one of the most significant domestic policy events” for the Labour government, as it balances demands across key areas such as healthcare, defence, and infrastructure.
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