£4.7bn ‘Regional Transport Fund’ to be diverted from abolished northern section of HS2 announced

Rishi Sunak held a cabinet meeting in Yorkshire and the Humber to set out how transport funding from the government’s abandoned HS2 project would be shared across local councils.

The north of England will receive £2.5 billion, while the Midlands will receive £2.2 billion, which was made available after the northern part of the flagship leveling up project was scrapped.

The government said the money would go into a Local Transport Fund for smaller cities, towns and rural areas, and that parliaments and unitary authorities would decide how best to use it.

Labor has accused the Government of having “brass necks” talking about “transforming” transport services in the Midlands and North after “countless broken promises to deliver just that”.

The meeting in the north of England will be the first time Mr Sunak has held regional ministers outside of the conference season since taking office in 2022.

Ministers last gathered on the outskirts of London for emergency talks ahead of the Prime Minister’s announcement at last year’s Conservative party conference that HS2 would be cut.

At the party’s annual general meeting in Manchester, the city most directly hit by the changes, Mr Sunak announced plans for a flagship leveling project in north Birmingham amid rising costs after months of speculation. confirmed that it would be cancelled.

The Chancellor promised that “every penny” of the £36 billion previously earmarked for the scheme would be reinvested into hundreds of new transport projects.

Mr Sunak is expected to tell Monday’s cabinet meeting that ministers and MPs should “hold local authorities to account” to ensure local transport funds are “spent appropriately”, according to Downing Street.

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The Transport Secretary will also update ministers on the delivery of Network North, the Government’s comprehensive plan to replace the northern leg of HS2.

The government says the new funding will allow local authorities to spend more money on the transport services their communities need most, such as expanding mass transit systems, plugging potholes, building roads and upgrading bus and train stations. The company believes that it will be able to reliably secure this over the long term.

The Prime Minister and his Cabinet will also meet with local communities, businesses and organizations to discuss the Fund’s priorities and how their region can best benefit from it.

Mr Sunak said: “We have a clear plan to level up our country by strengthening the transport networks people need and deliver the right long-term changes for a brighter future.

“Through the reallocation of HS2 funding, we are not only investing billions of pounds directly into small cities, towns and rural areas across the North and Midlands, we are also investing local leaders with their region’s most important We are helping them invest in transportation projects for their communities – this is a real level-up.

“The Local Transport Fund will usher in a new era of transport connectivity. This unprecedented investment will benefit more people, more places, faster than HS2 ever did. , alongside the billions of pounds worth of funding we have previously invested in roads, buses and local transport services across the country.”

Transport Secretary Mark Harper said: “Today’s £4.7 billion investment is truly game-changing for small cities, towns and rural communities across the North and Midlands, as this Government plans to improve local transport and builds on HS2 There is also a willingness to make difficult decisions, such as reallocating funds from phases.

“This funding boost will make a huge difference to millions of people, empowering local governments to drive economic growth, transform communities and improve the everyday transportation they rely on for years to come. It will be.”

Labor branded it a “knee-jerk policy reversal” and said communities were “sick and tired” of empty promises.

Shadow Transport Secretary Louise Hague said: ‘The Conservative Party has failed and local people are fed up with a government that treats them like fools.

“After 14 years of countless broken promises, only the Conservatives can promise further ‘transformation’ of transport infrastructure in the Midlands and North.

“The Conservative Party’s record says it all: record delays and cancellations on our rail network, more than 22 million potholes and record collapses on bus routes.

“Labour will reform our broken public transport system, take back control of our buses, return our railways to public ownership when their contracts expire, and give all communities the power to demand London-style services.” We look forward to working with mayors and local leaders to deliver a reliable and innovative rail and transportation infrastructure investment program.”