North East to benefit from £19.8 billion transport investment

Multibillion-pound plan to link major cities in the North via bus, rail and new and improved roads

  • government to redirect HS2 savings into unprecedented transport investment across the country, benefiting more people, in more places, more quickly
  • the North will receive £19.8 billion to link its major cities including the long-awaited dualling of the A1 between Morpeth and Ellingham
  • additional £3.3 billion to resurface roads in the North

The North East will benefit from new stations, reopened railway lines and revitalised roads in a major funding boost to create stronger public transport networks.

A total of £36 billion in savings from HS2 will be reinvested in hundreds of transport projects across the country, delivering more buses, reopening railway stations and ensuring major funding for new and improved roads.

Today (4 October 2023), we have announced the Network North plan, which will still see HS2 delivered between Birmingham and Euston in central London. But every penny that would have been spent extending the route will instead be redirected into roads, rail and buses to drive economic growth and provide jobs.

Network North will build better connectivity across the North and Midlands with faster journey times, increased capacity and more frequent, reliable services.

It will include a fully electrified and accelerated network between the major Northern cities boosting services and transforming the region’s transport infrastructure.

Further benefits for the North East will include: 

  • nearly £4 billion through City Region Sustainable Transport Settlements (CRSTS) to ensure all 6 Northern city regions will receive more than double their CRSTS1 funding to improve connectivity in their areas, benefiting millions of people living in the towns and suburbs around Newcastle and Teesside, funding new roads in the Tees Valley
  • funding to dual a section of the A1 between Morpeth and Ellingham
  • a £460 million package will also ensure the delivery of 21 smaller road schemes across the North, including the Blyth Relief Road
  • communities in the North East will be reconnected by the reopening of stations closed under the 1960s Beeching reforms, including a new station at Ferryhill, County Durham
  • £100 million will be shared across the North and Midlands to support the development and rollout of London-style contactless and smart ticketing, supporting seamless travel by enabling contactless or smartcard payment
  • a £3.3 billion long-term road resurfacing fund for the North alone will combat the potholes causing misery for drivers in the region
  • the popular £2 bus fare will also be extended until the end of December 2024 instead of rising to £2.50 as planned – and a £700 million bus funding package in the North will see more buses and more frequent routes, with more buses to industrial estates and business parks
  • the North East will receive around £1.2 billion from the CRSTS2 budget, plus a further £0.7 billion on top – funded from HS2. That is more than triple their allocation under CRSTS 1 (c.£1.8 billion versus c.£0.6 billion)
  • Tees Valley also will receive c.£0.6 billion from the CRSTS2 budget, plus a further c.£0.4 billion on top – funded from HS2. That is more than triple their allocation under CRSTS1 (c.£1.0 billion versus c.£0.3 billion)

Department for Transport