Future Rail: UK Investment in Rail Infrastructure Outside London

UK Government Announces Significant Investment in Rail Infrastructure Outside London

In a move welcomed by industry leaders, the UK government’s Spending Review, announced on June 11th, 2025, has pledged substantial financial commitments to rail infrastructure projects across the country, primarily outside the capital. This announcement, made by Chancellor Rachel Reeves, signals a renewed focus on upgrading existing networks and developing new rail lines. The core of the plan allocates £15 billion for local transport schemes within various city regions, alongside continued investment in major projects such as Northern Powerhouse Rail (NPR). The primary objective is to stimulate economic growth, enhance connectivity, and support decarbonisation goals. The article focuses on the specifics of the allocated funding, the projects slated for development, and the reactions from the railway industry, specifically the Railway Industry Association (RIA).

Funding Allocation and Key Projects

The Spending Review delivers significant funding for a number of key rail projects. These include the next phases of the Transpennine Route Upgrade (TRU), East West Rail, and Northern Powerhouse Rail. The Midlands Rail Hub and Welsh rail infrastructure also benefit from the allocation. This strategic investment aims to modernise existing lines, expand capacity, and improve journey times. These projects are crucial for regional economic development, linking major cities and towns across the country. The investment is not just restricted to large-scale projects; a substantial portion of the funding, as previously announced, is directed toward local transport initiatives, including metro and tram networks in areas such as the Midlands, Sheffield, Greater Manchester, Yorkshire, Tees Valley, Newcastle, and the West of England. These local schemes are designed to enhance urban mobility and reduce reliance on private vehicles.

Industry Response and Long-Term Funding Concerns

The Railway Industry Association (RIA), a leading voice for the rail supply chain, has responded positively to the announcement. RIA Chief Executive Darren Caplan welcomed the government’s recognition of the railway’s importance for economic growth. He highlighted the importance of this investment, especially in the context of projects like TRU, East West Rail, and NPR. Caplan also applauded the Treasury’s plans to reassess its Green Book investment framework, which he stated should prioritize social, environmental, and regional value. However, industry experts are cautiously optimistic, indicating that some bodies are still advocating for a more stable, predictable, and long-term funding framework. The ongoing need for consistent investment is vital to ensure the industry can meet ambitious decarbonisation targets and facilitate sustained growth.

Infrastructure and Skills Development

A crucial element of the Spending Review is the focus on skills and training within the rail sector. The Chancellor’s ambition to leverage private investment into transport, aimed at alleviating capacity and connectivity constraints, is also of note. The government is expected to release its Infrastructure and Industrial Strategies later in June, providing further details on how these initiatives will be delivered. The government’s emphasis on skills development indicates an awareness of the importance of a trained workforce to support the ongoing investment in rail infrastructure. This includes apprenticeships, specialist training programs, and a focus on attracting and retaining skilled professionals, which are critical for the successful delivery and maintenance of the projects.

The Green Book and Value Assessment

The government’s reassessment of the Green Book investment framework represents a significant shift. The Green Book, used by the UK Treasury to assess the value of public spending, is being updated to consider wider benefits, including social, environmental, and regional value. This shift is a welcome development for the rail industry, as projects often deliver significant non-economic benefits, such as reduced carbon emissions and enhanced social inclusion, which were not always fully accounted for in previous assessments. This enhanced framework is expected to encourage a broader approach to rail investment, ensuring that projects are evaluated based on their holistic contribution to national objectives.

Conclusion

The recent Spending Review demonstrates the government’s commitment to investing in rail infrastructure, particularly outside London. The significant funding allocated to projects such as TRU, East West Rail, and NPR, alongside local transport schemes, highlights the importance of improving connectivity and driving regional economic growth. While the RIA and other industry bodies have responded positively, there is a continued call for long-term funding certainty to support the sector’s ambitious decarbonisation goals and growth targets. The government’s plans to reassess the Green Book investment framework is a promising development, as it should ensure that rail projects are evaluated based on their holistic benefits. The focus on skills development and the leveraging of private investment further underscore the government’s dedication to enhancing the UK’s rail network. The outlook for the rail industry remains cautiously optimistic, with the expectation that more detailed plans outlined in the upcoming Infrastructure and Industrial Strategies will provide further clarity and direction.