Today (11 June) Chancellor of the Exchequer, Rt Hon Rachel Reeves MP, delivered the outcome of Phase 2 of the government’s Spending Review. 

The government announced in Autumn 2024, that the forthcoming Spending Review in 2025 will set government departmental resource budgets for three years and capital budgets for five years, with reviews every two years.

CIHT will be providing a more detailed analysis in the coming days. 

Sue Percy CBE, Chief Executive, CIHT said:

“CIHT welcomes the commitment to transport spend outlined today by the Chancellor. The Spending Review, shows that the government understands the vital role that highways, transport and infrastructure plays in the UK economy.”

“The announcement of funding to support the key areas of transport decarbonisation, public transport, climate resilience and highway maintenance echo many of CIHT’s recent submissions to government. The reference to an increase in funding for apprenticeships and training to reach an extra £1.2 billion per annum by 2029 is a welcome emphasis on the need to support the future skills of the sector.” 

“CIHT will be working closely with the government to support these initiatives and more in the run-up to the forthcoming 10-year infrastructure strategy.”

The following includes some of the highlights CIHT welcomes from the Spending Review that CIHT called for, including:

- £750 million per year to maintain and improve bus services, including introducing franchising pilots in areas including York and North Yorkshire and Cheshire West and Cheshire West and Chester

Read CIHT on improving buses

 - £2.6 billion capital investment to decarbonise transport from 2026-27 to 2029-30. This includes:

- Investing £616 million to build and maintain walking and cycling infrastructure. (1)

Read CIHT on making the case for active travel

- £1.4 billion for the continued uptake of electric vehicles

Read CIHT on electric vehicles

- £400 million to support the rollout of charging infrastructure, building on the almost 80,000 public charging devices already available; 

- Extending the £3 bus fare cap – due to end this year – by over a year until March 2027

Read CIHT Spending Review submission 

- £4.2 billion over three years, from 2026-27 to 2028- 29 for climate resilience 

- Providing £24 billion of capital funding between 2026‑27 and 2029‑30 to maintain and improve motorways and local roads across the country. 

Read CIHT Unlocking the Benefits of Long-Term Funding for Local Roads

- The impending publication of the government’s ‘10-Year Infrastructure Strategy’ later in June. 

Further announcements that CIHT welcome include: 

 - Investing £2.3 billion in the Local Transport Grant over Phase 2 for local transport improvements including bus lanes, cycleways and congestion improvement measures in places outside of those areas receiving TCR settlements.  

 - £15.6 billion investment in total by 2031‑32 through the new Transport for City Regions (TCR) settlements to give metro mayors of some of England’s largest city regions long‑term transport settlements.

 - Up to £27.8 billion capital to be invested through the National Wealth Fund (NWF), which will drive growth and create jobs across the UK in areas, including transport sectors. 

 - A multi-year settlement for London (TfL) of £2.2 billion of funding between 2026-27 and 2029-30 for Transport for London's capital renewals programme. 

- £1.2bn a year for training and upskilling, with a focus on creating more apprenticeship opportunities.  

- Devolved governments will receive an additional £5.7 billion per year on average through the operation of the Barnett formula. This translates as £52bn for Scotland, £23bn for Wales, and £21bn for Northern Ireland. 

The full government Spending Review Document is available to read here. 

CIHT looks forward to continuing to work with HM Treasury, the Department for Transport, and other government departments to ensure that the UK’s transport network is fit for all our futures.