Sheffield transport: New fleet of trams and franchised buses confirmed in £1.5bn transport announcement

Chancellor Rachel Reeves will announce today that South Yorkshire will benefit from £1.5bn investment in local transport, in what the Government is describing as part of the biggest ever investment in buses, trams and local train infrastructure in city regions.

The money will fund the building of a new fleet of trams for the South Yorkshire tram network by 2032. It will also reform South Yorkshire’s buses, with franchised buses operating in Sheffield, Doncaster and Rotherham by 2027, and across the whole of South Yorkshire by 2029.

Officials say bus franchising will mean South Yorkshire will have the opportunity to decide the routes, the fares and timetables for buses across the region.

South Yorkshire mayor Oliver Coppard says todays announcement also lays the foundation for extending the tram network.

In a speech in Greater Manchester, Ms 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 “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.”

The Government says there will be £530m to renew South Yorkshire’s tram network linking employment and housing areas in Sheffield and Rotherham - creating jobs, better commutes, bigger labour markets and more opportunity.

Mr Coppard today described the £1.5bn investment into the transport system as ‘game-changing’ for communities across South Yorkshire.

He said: “I know that big numbers like these can often feel disconnected from our daily lives. But put simply, that investment will help us make our vision of a bigger, better integrated transport network under public control, a reality.

“It will mean new and better buses, new electric vehicles, integrated ticketing and better information. It will mean new trams and better tram stops and lays the foundation for extending the tram network. It will mean our young people will be able to get to jobs and opportunities. That we can all access services, see friends and family, or go for a day, or a night out, without worrying how to get home.

“I’ve been clear that we’ve been ignored for too long, and that South Yorkshire has not received its fair share of funding from successive governments. Today’s announcement by the Chancellor Rachel Reeves of a £1.5bn investment into our transport system shows the government is listening, and backing, South Yorkshire.”

The announcement comes ahead of next week’s Government spending review.

Transport Secretary Heidi Alexander, said the announcement marked a watershed moment on the journey to improving transport across the North and Midlands.

She said: “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."

The Chancellor is also expected to confirm change in how Government approaches and evaluates the case for investing in the regions following a review of the Treasury’s ‘Green Book’ and how it is used.

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

Much the rolling stock on Sheffield’s tram network is approaching 30 years old, having been running since the system was launched in the 1990s.

The network’s tram trains, however, are newer, dating back to 2018.

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