The following Statement was made in the House of Commons on Wednesday 4 June.
“With permission, I shall update the House on the Government’s work to boost growth across the United Kingdom.
As the Prime Minister set out in the plan for change, economic growth is the No. 1 mission of this Government. It is key to achieving the Government’s goals: higher wages for working people; delivering economic and national security; and investing in our public services. We are already making progress. The most recent figures show that the United Kingdom was the fastest growing economy of any G7 country in the first quarter of the year and that real wages have risen more since July 2024 than over the first 10 years of the previous Conservative Government. But we are keenly aware that this progress must be widely felt in every part of the country. As such, our plan for regional growth will be hardwired into the spending review and infrastructure strategy, which will be set out in more detail in the coming weeks. This investment will be targeted squarely at the renewal of Britain and fixed on the priorities of working people, delivering on the promise of change and improving lives and communities across the country.
This morning, the Chancellor set out her next steps for nationwide growth in a series of speeches across the north and the Midlands, and I am pleased to update the House on those announcements now. A key part of the Government’s growth mission is the view that growth relies on dynamic, interconnected city regions, creating clusters of activity where people can get around, communicate, share ideas, commute, find good work and earn wages that flow back into strong local economies. As most Members know, the majority of our city regions have poor public transport systems, holding back growth and improvements to air quality and making it harder to get around. Stronger transport links are therefore crucial. They create opportunities for individuals to access a wider pool of jobs, for employers to access a wider labour market, and for businesses to expand the market for their goods and services.
If we were to increase the productivity of our largest city regions outside London just to match the national average, it would grow the economy by £86 billion. So I am pleased to say that this Government are making the biggest investment in intra-city transport connectivity that this country has ever seen. The spending review will allocate funding for ambitious local transport programmes across England, including the new transport for city regions fund launched by the Government today. This will give nine city region mayors a share of £15.6 billion in long-term transport for city region settlements running until 2032. The benefits and opportunities will be felt in the cities and towns across these combined authorities and by those who commute to work from outside those city regions.
The previous Government said that they would do some of this but, as was always the case, they never put the money aside to pay for it. As a result of our reforms to the fiscal rules and decisions to increase investment in the 2024 Autumn Budget, this Labour Government are delivering.
The funding announced today will mean that the Mayor of West Yorkshire can now fully commit to delivering the West Yorkshire mass transit system, which will be fully integrated with cycling, walking, bus and rail, making journeys quicker, more accessible and more reliable across the region. The Mayor of the West Midlands can extend the metro from Birmingham city centre to the new sports quarter, unlocking more than £3 billion of private investment, and bringing benefits and opportunities to those living in the constituency of my right honourable friend the Member for Birmingham Ladywood, Shabana Mahmood, and all who travel there.
It will mean that the Mayor of Greater Manchester can grow and transform the Metrolink tram network, building new tram stocks in Bury, Manchester and Oldham, which will help drive up living standards for the constituents of my honourable friends the Members for Bury North, Mr Frith, for Bury South, Christian Wakeford, and for Oldham East and Saddleworth, Debbie Abrahams, and for others in the north-west region. The Mayor of Liverpool city region can deliver three new rapid bus routes linking up the city centre, John Lennon airport, the new Everton stadium on Bramley-Moore dock, and new homes built on the Central Docks redevelopment and Anfield.
The Mayor of the North East will now be able to extend the Tyne and Wear Metro, linking Washington with Newcastle and Sunderland, connecting those living in the constituency of my honourable friend the Member for Washington and Gateshead South, Mrs Hodgson, to new jobs and opportunities. I pay particular tribute to my honourable friend, who has campaigned for this project for years and years, and it is now being delivered by a Labour Government.
This investment will also mean that the Mayor of South Yorkshire can renew the existing and now publicly owned Supertram network with track replacements, overhead line maintenance, and rolling stock renewal, yielding a fleet of new vehicles by 2032, linking jobs and homes in Sheffield and the constituency of my honourable friend the Member for Rotherham, Sarah Champion.
We are backing the Mayor of the West of England’s plans for mass transit development across the region, with improved rail infrastructure to help unlock more services between Brabazon and Bristol city centre, meaning shorter journey times to Bristol Temple Meads across the wider area and providing greater opportunities for those in the constituency of my honourable friend the Member for Filton and Bradley Stoke, Claire Hazelgrove, and—declaring my own interest—in my own.
After years of the Mayor of Tees Valley trying to persuade his Conservative colleagues to fund these important projects, I am delighted to confirm today that this Labour Government are now backing the region to invest in, for example, the Middlesborough station in the constituency of my honourable friend the Member for Middlesbrough and Thornaby East, Andy McDonald, unblocking local networks and increasing capacity on local lines. I pay particular thanks to my honourable friends the Members in the Teesside region who have lobbied hard to see this investment in their region—now being delivered by a Labour Government.
The Mayor of the East Midlands can now forge the Trent Arc, linking Derby and Nottingham to create tens of thousands of new jobs and homes, connecting Infinity Park investment zone and the east Midlands freeport with sites including Ratcliffe-on-Soar clean energy and advanced manufacturing and the East Midlands Intermodal Park—home of Toyota in the region—along the Trent Arc corridor.
This funding is substantial, marking a 2.4 times real-terms increase in spending on city region connectivity, funding the priorities that matter to hard-working people across the country. These announcements were made possible today only because at the Autumn Budget 2024 the Chancellor took the necessary action to reform the fiscal rules to improve stability after years of chaos from the Conservative party, and to unlock investment. This means the Government can now provide greater investment in Britain’s economic revival as, for the first time, the Treasury takes account of the value of financial assets and not just the costs of investment. That has enabled us to increase investment by over £113 billion more than the previous Conservative Government, while keeping debt on a sustainable path—made possible only by the credibility of our fiscal rules, which require day-to-day spending to be funded with revenue.
It is more important than ever to have a robust fiscal framework. I am pleased to note that the Office for Budget Responsibility confirmed at the Spring Statement that the Government will meet their stability and investment rules two years ahead of schedule. In addition to her announcements today regarding transport for city region settlements, the Chancellor will set out further detail on this allocation of additional funding at next week’s spending review.
In January, the Chancellor announced a review of the Green Book, the Government guidance on appraising options for investment. Since then, we have consulted extensively with stakeholders from across the country, considering potential problems with the Green Book guidance itself and how the guidance is being applied in practice. I thank and pay tribute to many honourable Members across the House for engaging on this important issue.
We will publish the full conclusions of the review next week. It will mark a new approach to government decision-making that puts an end to siloed Whitehall thinking and takes account of the reinforcing economic effects of infrastructure, housing, skills and jobs, to ensure that investment takes place in every part of the country.
These announcements reflect just a fraction of our plans to supercharge growth across the United Kingdom. We are focused on investing across all parts of the country to boost prosperity and deliver the change the British people voted for at last year’s election, and there is more to come. The spending review, which we will publish next week, will set out in further detail how an active Government will continue to deliver growth, empowering all regions and nations of the UK to reach their full potential and making working people across the country better off, no matter where they choose to live and work.
Unlike the Conservatives, who will tell us that they would have delivered on their false promises after 14 years of failing to do so, this Labour Government, in our first year in office, are delivering: a country that people will see is being set up for success that they can take part in. That is the change we promised, and that is the change this Labour Government are delivering. I commend this Statement to the House”.