By Tom Austin-Morgan

Funding for the Coventry Very Light Rail (CVLR) and Birmingham’s Sports Quarter regeneration project has reignited debate around the role of trams in UK’s transport mix.

The money, linked to the UK government’s Green Book plan and wider city regeneration funds, reflects a shift towards devolved decision-making, with mayoral combined authorities now able to prioritise investment in the infrastructure that best supports local growth.

For James Hammett, Managing Director of UKTram, the resurgence of interest in light rail is a logical step.

“Devolution allows local areas to decide where funding is going. If you’re building more houses and industry, you need to connect it, and that’s where investment in transport schemes – including trams – is now coming from,” he explains.

While electric buses have attracted headlines, Hammett stresses that trams remain the stronger long-term investment. 

“An electric bus might last five to seven years, whereas a tram will last 30. Over its life cycle, trams are a lot better value for money,” Hammett says. “Unlike bus routes, which can be rerouted or withdrawn, trams represent fixed infrastructure that anchors development. Businesses build around fixed infrastructure, that’s where light rail wins.”

According to Hammett, this permanence also encourages confidence among passengers and investors. Birmingham and Manchester, which continue to expand their networks, demonstrate how once systems are established, successive extensions become easier to deliver and integrate.

Reliability and efficiency

Frequency is another crucial benefit. Whereas regional rail services can leave passengers facing hourly gaps, trams typically operate every few minutes, cutting the ‘missed train penalty’ and giving passengers confidence they will get to their destination.

Hammett also points to energy efficiency and capacity advantages, saying, “Even the smallest tram will take 200 people, compared to 70–75 on an electric bus. Once you look at emissions per passenger, trams perform significantly better.”

Importantly, UKTram emphasises that light rail should not be viewed in opposition to other modes. 

“It’s not a competition, it’s about integration,” Hammett stresses. “Trams provide the backbone, with buses, bikes, taxis and emerging mobility options feeding into and complementing the fixed network. The goal is that people don’t think about getting in the car because of the alternative options available.”

Manchester’s Bee Network is already showing how coordinated planning can reduce car dependency. Outside London, it has the fewest cars per head of population in part thanks to seamless connections across tram and bus services.

The wider case for trams ties directly into the UK’s net zero and regeneration ambitions. By supporting modal shift, reducing congestion and encouraging sustainable city design, tram projects can unlock both environmental and economic benefits.

“This is about longer-term planning,” Hammett concludes. “Trams fit better with that vision because they are a long-term transport investment.”

This renewed momentum in Coventry, Birmingham, Leeds and potential schemes in Derby and beyond, added to existing networks in Blackpool, London, Sheffield and Manchester seeing more investment, suggests trams are being backed to be a catalyst for cleaner growth and better-connected communities.