Today, I am pleased to announce significant additional transport funding for County Durham, as part of our commitment to enhancing transport infrastructure across the UK. The £4.7 billion Local Transport Fund, a pivotal aspect of our Network North plan, is set to revolutionise transport systems and services in County Durham for the years 2025/26 and 2026/27.
This substantial investment of £72,844,000, allocated to the North East Mayoral Combined Authority (NEMCA), marks a tangible step towards fulfilling our promise to prioritise local transport improvements. Importantly, this funding is made possible through prudent savings from the HS2 project, demonstrating our commitment to responsible financial management.
As affirmed by the Prime Minister, every pound originally designated for HS2 Phase 2 will now be redirected towards projects that benefit a broader spectrum of communities, far more rapidly. This reallocation ensures that regions like County Durham receive their fair share of infrastructure investment, facilitating economic growth and prosperity.
Our steadfast dedication to levelling up communities across the UK remains unwavering. Through the Local Transport Fund, we are delivering on our pledge to enhance public transport, alleviate congestion, and modernise transport hubs. Over the next seven years (2025-2032), £2.5 billion will be allocated to the North and £2.2 billion to the Midlands, empowering local authorities to address pressing infrastructure needs, from road enhancements to sustainable transport initiatives.
Moreover, larger combined authorities in the North and Midlands are set to receive substantial boosts in funding, with an additional £8.5 billion injected into the City Region Sustainable Transport Settlements, financed by HS2 savings. This includes a significant indicative allocation of £1.8 billion for NEMCA from 2027 onwards, further underlining our commitment to regional development and connectivity.
The infusion of capital funding into County Durham reflects our dedication to empowering local and combined authorities to spearhead transformative projects tailored to their unique priorities. This announcement is a testament to our ongoing efforts to channel HS2 savings into tangible improvements that benefit communities nationwide.
In tandem with this announcement, we are continuing to roll out a series of measures aimed at revitalising transport networks across the UK. From extending the national £2 bus fare cap to initiating a £1 billion investment in buses, with £150 million allocated to the North and Midlands, we are committed to delivering tangible benefits to residents.
Furthermore, our £8.3 billion road resurfacing fund, coupled with the top-up to City Region Sustainable Transport Settlements, underscores our comprehensive approach to enhancing transport infrastructure and driving economic growth.
In conclusion, this announcement represents a significant milestone in our journey towards building a more connected, prosperous future for County Durham and the wider UK. We remain steadfast in our commitment to delivering tangible results and ensuring that every community thrives.