Transport investment is Yorkshire’s chance to build a stronger economy: Phil Murden

The government’s support is encouraging, with a major capital injection of £1.5 billion to renew South Yorkshire’s tram system and update bus services across Sheffield, Doncaster and Rotherham by 2027.

The Chancellor also announced the allocation of £2.1 billion that will enable the West Yorkshire Combined Authority to build its new mass transit system by 2028.

Once established, these systems will transform how people travel across the region by modernising public transport, improving daily mobility, and connecting key growth areas to support long-term development.

The government has also announced £32 million for resurfacing roads and building new cycle lanes across the North East and Yorkshire. This investment in active travel reinforces the government’s push for more integrated, inclusive transport – beyond just cars and buses.

These investments are more than transport upgrades. They are catalysts for economic growth, investor confidence and social inclusion. Improved connectivity reduces travel times, cuts costs, and broadens access to talent and supply chains.

For Yorkshire’s diverse business base, this will be transformational for us. Long-term infrastructure funding also signals confidence to investors, unlocking housing, commercial growth and regeneration around transport hubs.

And by connecting more people - regardless of income or postcode - to jobs, education and healthcare, these projects can help build a more inclusive and resilient regional economy. However, the scale of the opportunity is matched by the challenge of delivery.

The government has made recent changes to the UK planning regime, aiming to accelerate infrastructure timelines. The true test will be execution. Business leaders I speak with want to see action beyond headlines in the papers.

Whilst bus reform is on track, the mass transit programme is at the start of its journey. To deliver mass transit will require rapid scaling of the delivery capability within the Combined Authority and its local government partners, consensus on the vision for the programme, collaboration with industry, and streamlined decision making.

Delivering impact means prioritising strategically. Every infrastructure investment must be outcome-driven; focused on easing congestion, unlocking housing, connecting people to jobs and integrating trams, buses, rail and active travel - especially for underserved communities.

I’m encouraged that we’ll see region-led approach to delivery, with the combined authorities being at the heart of planning and implementation. This will be key to providing businesses, communities and investors with the clear timelines, regular updates and visible progress they need. Strong governance, consistent communication and local input will build trust and ensure value for the communities that these projects are designed to serve.

Yorkshire’s future depends on how well we deliver. The funding is here. The vision is clear. Now is the time to act - with purpose, speed and measurable impact - to make transport the backbone of the region’s next economic chapter.

Phil Murden is Leeds Office Senior Partner for KPMG UK