Major Government funding confirmed for North East transport

North East Mayor Kim McGuinness has welcomed multi-million-pound government funding of over £188.7m which will provide a major boost to the region's transport network.  

The allocation confirms £116.8m in City Region Sustainable Transport Settlement (CRSTS) funding for 2025/26 as well as £23m of new funding for County Durham to join the CRSTS programme in 25/26 and 26/27, £39m for essential renewals for Metro and £9.85m in capability funding to support the region's CRSTS programme. 

This substantial funding has now been confirmed by the Department of Transport and will help to deliver integrated, sustainable transport schemes across North East England, in line with the Mayor's ambitions and the emerging draft Local Transport Plan and Local Growth Plan.  

North East Mayor Kim McGuinness, said: “This multi-million-pound funding from Government recognises the huge ambition of the North East and our ability to roll our sleeves up and deliver major, transformative transport schemes which greatly benefit our communities.  

“I am pleased that the Government supports our ambitions and has allocated this substantial funding to allow us to get on with the job of delivering the world-class transport network that people of the North East deserve.  

“This funding includes money to deliver our City Region Sustainable Transport Settlement (CRSTS) programme in 2025/26, an additional £23m in new money which will bring County Durham into CRSTS in line with our other authorities, £39m in essential renewals funding for our region's Metro network – relied on by thousands of customers every day, and £9.85m in capability funding to allow us to deliver the programme.  

“This award is very welcome news for the North East and a major milestone which shows this Government is working with me to get the job done.” 

In July 2024, the Mayor and North East Combined Authority Cabinet agreed the region's draft City Region Sustainable Transport Settlement (CRSTS) programme.  

Government established the CRSTS programme with the aim of providing consolidated, long-term capital funding for investment in public and sustainable transport infrastructure across the geography of a Mayoral Combined Authority area. CRSTS is intended to leverage investment in integrated and cross-modal sustainable transport, for example, bus, rail, cycling and walking.