Trams are reshaping modern Britain as vital arteries of growth, social inclusion and environmental progress. At a time when the government is reassessing HS2 and long-term infrastructure priorities, light rail offers a proven, cost-effective route to unlock regional prosperity, and the evidence is mounting fast.
A watershed moment in national investment
In June, Chancellor Rachel Reeves unveiled a record £15.6 billion funding package for city-region transport, an investment Reeves described as "the biggest ever investment of its kind".
Crucially, significant proportions are earmarked for tram and mass transit. Greater Manchester is set to receive £2.5 billion for Metrolink extensions to Stockport and new stops in Bury, north Manchester and Oldham; West Yorkshire will see £2.1 billion to launch its mass transit network; while Sheffield, the West Midlands, East Midlands and North East will also secure dedicated tram network funding.
This level of regional commitment marks a strategic shift. It positions light rail as a core mechanism for levelling up – accelerating economic growth, cutting carbon and reconnecting communities.
Innovation in delivery
Today we're witnessing technological breakthroughs that make trams even more attractive. Take Coventry's Very Light Rail (VLR) pilot – using battery powered vehicles and slimmer track to reduce initial costs. Other cities, with backing from the £15 billion pot, are similarly embracing up-and-coming innovations.
Yet innovation alone isn't enough. A fragmented system isn't a network. As the cities in which we operate light rail services, Manchester, Nottingham and London, have shown, success requires seamless integration of ticketing, services and space.
In Greater Manchester, the Bee Network has already brought tram and bus services under a single fare system. By 2028, it aims to go further by integrating eight commuter rail lines and 64 stations into the Bee Network. In tandem, Manchester trams deliver on-time performance and strong passenger satisfaction – as only reliable, well integrated systems can.
Lessons from across the globe
At Keolis, we are the world's leading operator of tramways and automatic metro systems with 26 trams and 8 automated metros. In Dijon, a fully multimodal Mobility as a Service (MaaS) platform links tram, buses, bike-share and parking. In Hyderabad, automated metro design incorporates operational resilience. Against this backdrop, UK schemes must be built with long-term adaptability, repeatably excellent performance and passenger experience at their core, not delivered as one-off civil-engineering projects.
This moment demands a new approach to public transport procurement in the UK. The latest spending review gives us the opportunity to shift from short-term, typically three-year funding cycles to long-term, ten-year strategic programmes. That shift matters. It creates the conditions for stable investment, faster decisions and better outcomes. It also gives private sector partners the confidence to contribute innovation, scale and knowhow. But more than that, it fosters real collaboration where conversations aren't just about when something gets built, but how it will ultimately serve passengers.
A national commitment to local outcomes
With HS2 under review, now is a strategic inflection point. We can either double down and focus exclusively on mega-projects, or we can rebalance to unlock dozens of regionally focused light rail schemes that drive carbon reduction, regional development and better daily journeys. And we can do it faster, more affordably and inclusively.
But partnerships must be ambitious and national strategy must recognise the full potential of light rail, not merely as local initiatives, but as foundational structures in a modern UK transport network.
This is a defining moment for trams.
