Reeves unveils £15.6bn transport boost ahead of Spending Review

Chancellor Rachel Reeves has today announced a major £15.6 billion investment in transport infrastructure across England, setting the stage for next week’s crucial Spending Review while warning that not all government departments will get what they want.

Delivering a speech in Manchester, Reeves defended her firm approach to public finances, saying some ministerial requests for funding had already been turned down. She described constraints on departmental budgets as “a product of economic reality,” and underlined her commitment to fiscal discipline.

“Not every department will get everything they want,” she said. “We must make choices that reflect our economic situation, while still laying the foundations for long-term growth.”

The £15.6bn funding package will focus on improving tram, train, and bus services across key regions including the Midlands, the North of England, and the West Country. The funds are earmarked for mayoral authorities, with an emphasis on unlocking regional growth and addressing long-standing gaps in infrastructure investment.

The announcement is seen as a significant move ahead of the Spending Review scheduled for June 11, where Reeves is expected to outline the government’s broader economic and fiscal plans.

Business leaders have cautiously welcomed the news.

Mike Randall, CEO of Simply Asset Finance, said: “More investment into UK infrastructure is always welcome news, and businesses across the country will now be eager to mobilise off the back of this new commitment.”

However, he warned that further steps are needed to ensure the investment benefits those on the ground. “What we now need is a clear roadmap on how this investment will make its way to the firms – small and medium-sized businesses – that will be fulfilling future contracts, and helping to pioneer regional growth.”

Randall also called on the government to provide more details on its “long-awaited Industrial Strategy,” noting that many firms are still waiting for clarity on the next phase of economic planning.