Tees Valley to get £1B of Government funding for transport

£60 million for Middlesbrough Station confirmed

Launch for 3rd platform scheme in 2018
Author: Micky WelchPublished 4th Jun 2025

Working people across the North, Midlands and the South West will benefit from the biggest ever investment in buses, trams and local train infrastructure in city regions as the Chancellor today promises the renewal of Britain to make all parts of the country better off.

In a speech in Greater Manchester, Reeves is expected to say that “a Britain that is better off cannot rely on a handful of places forging ahead of the rest of the country,” adding that the “result of such thinking has been growth created in too few places, felt by too few people and wide gaps between regions, and between our cities and towns.”

Reeves will say the Spending Review next week will take different choices, with investment in a “new economic model – driven by investment in all parts of the country, not just a few.”

She will unveil the first investment announcements from the Spending Review, with £15.6 billion of funding for local transport projects in England’s city regions – including South Yorkshire, the North East, the East Midlands and Tees Valley. The funding – a more than double real-terms increase in capital spending on local transport in city regions by 2029/30 compared with 2024/25 - will empower local leaders to invest in transport projects that will make a difference to their local area.

Transport Secretary Heidi Alexander, said:

“Today marks a watershed moment on our journey to improving transport across the North and Midlands – opening up access to jobs, growing the economy and driving up quality of life as we deliver our Plan for Change.

"For too long, people in the North and Midlands have been locked out of the investment they deserve. With £15.6bn of Government investment, we're giving local leaders the means to drive cities, towns and communities forward, investing in Britain’s renewal so you and your family are better off."

This long-overdue investment outside of London and the South East will see projects like the Metro extension linking Washington to Newcastle and Sunderland and the renewal South Yorkshire’s tram network linking employment and housing areas in Sheffield and Rotheram get off the ground - creating jobs, better commutes, bigger labour markets and more opportunity.

Middlesbrough Railway Station in April between Middlesbrough & Thornaby East MP Andy McDonald and representatives from Network Rail and Transpennine Express regarding MIddlesbrough Railway Station.

The game-changing funding comes ahead of next week’s Spending Review when the Chancellor will set out how this government is investing in the country’s future and the priorities of working people to make every part of Britain better off.

The five-year settlements will mean the Mayor of West Yorkshire can commit to delivering the West Yorkshire Mass Transit, which will be fully integrated with cycling, walking, bus and rail, making journeys quicker, more accessible and more reliable across the region.

The funding will also mean the Mayor of the West Midlands can build a metro extension to Birmingham’s sports quarter, making a start on his ambitions to deliver mass transit from East Birmingham to North Solihull.

It will also allow the Mayor of Greater Manchester to transform the Metrolink tram network, with new stops in Bury, north Manchester and Oldham and a Metrolink extension to Stockport town centre.

The Chancellor is also expected to confirm “a step change in how government approaches and evaluates the case for investing in our regions” following a review of the Treasury’s Green Book and how it is used, “to make sure that this government gives every region a fair hearing when it comes to investments”.

The full conclusions of the Green Book review will be published on June 11, alongside the wider Spending Review.

Henri Murison, Chief Executive of the Northern Powerhouse Partnership, said:

“This government’s decision to back major local transport projects with serious, long-term investment will be critical to driving regional growth. The economic revival of Greater Manchester, enabled by sustained investment in the tram network in particular, has already begun to close the productivity gap with London. To build on that success and replicate it across all our regions in the North, we need to see key projects delivered – including the extension of the Metro to Washington, the replacement of the Sheffield tram fleet, and the extension of Metrolink to Stockport.”

“Too many times in the past, a trade-off was made – due to limited funding – between connectivity within and between our regions. The spending rules adopted last autumn mean this government can invest in both at the same time, unlocking far greater productivity gains than prioritising one at the expense of the other.”

Jonny Haseldine, Head of Business Environment at the British Chambers of Commerce, said:

“The pathway to the strong and consistent growth the UK economy needs has to come through investment in our regions.

“That means developing regional infrastructure, including transport projects and grid connectivity, improved rail capacity and electrification of key sections of the network.

“These projects can then give firms involved in the supply chains real confidence to start planning and investing in their local economies.

“But it is critical that no corner of the UK gets left behind and regional development works in alignment with national goals.”

Luke Myer, Labour MP for Middlesbrough South and East Cleveland, welcomes the news

“This is fantastic news and long overdue - this money will be transformative for the people of our region. Every week, I’m hearing from people who are desperate for transport improvements - from more reliable public transport to proper road maintenance. Transport improvements have been promised for years - finally we have the cash to deliver.

“Now the Tees Valley Mayor has the money and the powers - he must get on with delivering these projects, whether it be bus expansion for our communities in East Cleveland, a new third platform at Middlesbrough, or improved infrastructure across Teesside.”

He added that local people will rightly expect improvements to begin quickly and called for a stronger focus on core services.

Middlesbrough and Thornaby East MP Andy McDonald says it's a ‘game-changer’

Middlesbrough & Thornaby East MP Andy McDonald today welcomed the Labour government’s decision to fund the £60m third platform at Middlesbrough railway station.

Mr McDonald unveiled the plans seven years ago alongside the then Labour Mayor of Middlesbrough Dave Budd describing it as a “game-changer” in a launch event at the station.

As stated at the time the works proposed were for:

• The re-opening of the southern entrance.

• A stunning new glass frontage and concourse on Bridge Street.

• An additional platform.

• New commercial units.

• Additional passenger facilities and;

• Improved access for sustainable modes of transport such as buses, taxis, cars and cycles.

While some of that work has been completed, Mr McDonald said it was what was now coming down the line which would be transformative for Teesside.

He said: "This is absolutely fantastic news for our constituency. It is now seven years since the masterplan for Middlesbrough Railway Station was launched by myself and former Middlesbrough Mayor Dave Budd.

Launch for 3rd platform scheme in 2018

"The most important part of the scheme was then, and remains today, building the third platform. Platform 3 will significantly expand capacity and allow us to increase services, including the service to London, all of which will all add to economic performance of our region.

"That the Labour government is now supporting Platform 3 to the tune of £60m - and by £1bn into local transport more broadly - is wonderful. I said when we unveiled this plan that it would be a 'game-changer' for Middlesbrough and the wider Teesside area and that is just as true today as it was then.

"The wider plan we had for the station included the reopening of the southern entrance which has been delivered and for new retail units, which are just about ready to go.

“Our ambition beyond today’s announcement is for a re-imagined frontage at the north entrance opening out into Middlehaven. The delivery of the third platform makes that possible.

"Last month I met with the various partners involved in making this happen at the station and just today I met with rail minister Lord Peter Hendy to discuss Middlesbrough Station and other rail issues.

“I retain the ambition to deliver the very best for Middlesbrough's station and will continue battling away to make sure we achieve it and get what Middlesbrough and Thornaby East deserves, including electrification upgrades across the network."

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