Overview

• Rachel Reeves unveiled a £15.6bn package to fund trams, trains and buses outside London, with major allocations including £2.5bn for Greater Manchester and £2.4bn for the West Midlands
• Key projects include a West Yorkshire Mass Transit system set to start construction by 2028, a Metro extension linking Newcastle and Sunderland, and tram renewals in South Yorkshire and the West of England
• The announcement follows changes to the Treasury’s Green Book that prioritise regional productivity and social outcomes over traditional London-centric investment criteria
• The upcoming June 11 review will outline the wider £113bn capital programme, set departmental budgets for health and defence and propose revisions to winter fuel payments under fiscal constraints
• Reeves ruled out further large-scale tax hikes to fund the spending but warned that departments will face tough settlements as NHS and defence demands compete for resources