In an address to Parliament, Chancellor Rachel Reeves has laid out a comprehensive and ambitious spending review that signals a new era of investment, stability, and national renewal under the Labour government. Her speech was not just a fiscal roadmap—it was a declaration of intent to rebuild Britain’s economy, infrastructure, and public services.
Reeves began by highlighting the state of public finances inherited from the previous government, citing a “£22 billion black hole.” She emphasised that her priority as Chancellor was to restore stability:
She said
“At the budget last October and again in the spring, I made the choices necessary to fix the foundations of our economy.”
Of particular interest to the rail industry the chancellors statement included:
- £15 billion for local transport.
- £3.5 billion for the Transpennine Route Upgrade.
- £2.5 billion for East West Rail.
- Funding for the Midlands Rail Hub and £445 million for Welsh railways.
Railway Industry Association (RIA) Chief Executive Darren Caplan said:
“The Railway Industry Association welcomes the support Chancellor Rachel Reeves announced for UK rail in the Spending Review, and the recognition that the railways are key to delivering economic growth.
"This support includes the next phases of the Transpennine Route Upgrade, East West Rail, and Northern Powerhouse Rail, as well as new funding for the Midlands Rail Hub and for Welsh rail infrastructure.
“The Treasury's plans to reassess the Treasury’s Green Book investment framework should also be applauded, as social, environmental and regional value are all central to what rail delivers.
“This Spending Review follows the announcement last week of £15 billion of funding for local transport in city regions, including metro and tram networks, whether the Midlands, Sheffield, Greater Manchester, Yorkshire, Tees Valley, Newcastle, or West of England. Rail businesses from every part of the UK will want to be involved with delivering those schemes, as the Government and devolved bodies take them forward.
“Finally, we also welcome the Chancellor’s focus on skills and training as well as her ambition to leverage private investment into transport to help alleviate capacity and connectivity constraints. We look forward to more details on how this will be delivered, when the Government’s Infrastructure and Industrial strategies are published later in June.”
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