Families and communities across the South East are set to benefit from the Spending Review 2025, as the government backs Britain’s renewal with investment in transport, regeneration and thousands of new jobs.
Local Transport Funding
We are providing £2.3bn for the Local Transport Grant nation-wide, enabling local authorities (LAs) to deliver transport improvements including more zero emission buses, cycleways, accessibility and congestion improvement measures in places outside of those areas receiving TCR settlements. This will deliver a four-fold increase in funding in 2029-30 compared to 2024-25.
Major rail upgrades and transport:
The South East will benefit from the £2.5 billion investment into the delivery of East-West Rail.
£25.3 billion will progress the delivery of HS2 Phase One, including the Euston terminus, improving connectivity with the South-East.
Freeports and devolution:
The government is confirming support for the Solent Freeport.
Reaffirming commitment to the Devolution Priority Programme, the government will support mayoral devolution for Sussex and Brighton and Hampshire and the Solent, subject to local agreement and statutory tests being met.
Local investment:
The government is also establishing a Growth Mission Fund to directly support local economic growth. This fund will invest £240 million of capital from 2026-27 to 2029-30 in projects that enable local job creation and the regeneration of local communities. Further detail on this fund and the criteria that will be applied for project selection will be set out later this summer.
The South East is also set to benefit from investment in up to 350 deprived communities across the UK, to fund interventions including community cohesion, regeneration and improving the public realm.
