The Liverpool City Region is poised for a major transformation following confirmation of a record-breaking £1.6 billion investment to advance its next phase of transport development. This unprecedented funding package will support significant rail upgrades, the launch of a new rapid transit system, and infrastructure improvements to unlock one of the UK’s most ambitious regeneration schemes.
Announced by the Chancellor ahead of this year’s Spending Review, the funding marks the largest ever investment in the region’s transport network. It will drive economic growth, improve connectivity across communities, and open up new opportunities for residents throughout the region.
Provided through the City Region Sustainable Transport Settlement (CRSTS), the funding will accelerate Metro Mayor Steve Rotheram’s vision for a London-style public transport network—clean, fully integrated, and accessible to all. It will also serve as a catalyst for new housing, employment, and training initiatives.
A key component of the investment is a major expansion of the region’s rail infrastructure, with the development of three new stations: Carr Mill in St Helens, Woodchurch in Wirral, and Daresbury in Halton. These will be delivered alongside existing projects at Liverpool Baltic and the redevelopment of Runcorn Station.
These rail projects are central to expanding the Merseyrail network’s reach, including a new direct link to Sci-Tech Daresbury—expected to support the creation of 8,000 jobs—and future plans to connect to Wrexham, strengthening ties with North Wales.
The investment also includes a commitment to delivering a new Rapid Transit system. Offering fast, modern, and reliable transport between Liverpool city centre, John Lennon Airport, and key sites in North Liverpool, the service is modelled on successful systems like Belfast’s Glider. It aims to boost regeneration, better connect communities, and enhance access to key destinations such as Bramley Moore Dock.
As part of wider efforts to overhaul the region’s bus network, funding will support the transition to a zero-emission bus fleet, the construction of new depots, and the introduction of bus franchising—bringing services back under public control for the first time in nearly four decades.
In parallel, the investment will help unlock a major regeneration initiative across North Liverpool and South Sefton, anchored by the new Everton stadium. The scheme is projected to deliver over 10,000 new homes, generate thousands of jobs, and create vibrant public spaces through improved highways, active travel routes, and better connectivity.
Steve Rotheram, Mayor of the Liverpool City Region, said:
“This is a really big win for our area and for the 1.6m people who call it home.
“It means new train stations where they’re needed most, better buses that actually turn up, and a new rapid transit system to help people get where they need to be – whether that’s for work, education, socialising or care.
“For too long, too many of our communities have had to put up with second-rate services. This is our chance to put that right.
“With buses coming back under public control for the first time in a generation, this funding gives us the tools to shape a transport system that puts people first. And while the headline projects are important, the real value lies in the flexibility it gives us to keep investing in the infrastructure our communities need now and into the future.”
Transport Secretary, Rt Hon Heidi Alexander MP, said:
“Today marks a watershed moment on our journey to improving transport across the North and Midlands – opening up access to jobs, growing the economy and driving up quality of life as we deliver our Plan for Change.
“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.”
Beyond the three flagship projects, the funding will also back a number of schemes aimed at revitalising and reconnecting towns across the city region – including Bootle, Huyton, Kirkby and Southport – as part of a broader strategy to encourage a shift from car use to public transport and achieve the region’s Net Zero 2035 target.
Investment will also support the Hind Street corridor in Birkenhead, unlocking the regeneration of Wirral Waters, the Left Bank and Birkenhead town centre. The project will deliver infrastructure to support up to 1,500 homes on nearly 11 hectares of brownfield land, catalysing growth on the eastern side of the Mersey.
This significant new investment builds upon the Liverpool City Region Combined Authority’s proven track record of successful transport delivery – from the roll-out of the region’s new train fleet, which is the most accessible in the UK, to the opening of new train stations including Headbolt Lane in Kirkby, which has connected more than 20,000 residents to the region’s network rail network for the first time.
Other major recent investments in the Liverpool City Region transport network include the purchase of 100 zero-emission double-decker electric buses; a £32 million transport interchange for St Helens town centre; £26 million for the first new Mersey Ferry in over 60 years; £150 million for new walking and cycling infrastructure; £15 million for a revamp of key city region gateway Runcorn station and £100 million for the new Liverpool Baltic rail station.
READ MORE: Liverpool-Manchester Railway plan could unlock £90bn economic boost
