The government’s £92 billion investment in road and rail projects across England has been welcomed by the finance industry as a long-overdue stimulus for regional growth, with calls for small and medium-sized enterprises (SMEs) to be given fair access to the resulting opportunities.
John Phillipou, managing director of SME lending at Paragon Bank and chair of the Finance & Leasing Association, described the announcement as “promising news for manufacturing and construction SMEs” and a potential catalyst for housing development, job creation and broader economic growth in regional communities.
The Department for Transport confirmed on Monday that more than 50 transport upgrades have been given the go-ahead, including strategic road schemes in Staffordshire, Derby, Nottinghamshire and Greater Manchester, alongside key rail reinstatements in the South West and new funding for the Midlands Rail Hub.
Collectively, the schemes are expected to support over 39,000 new homes and 42,000 jobs.
“As a specialist lender providing finance to thousands of SMEs, many of which rely on a fluid transport network, we see firsthand how critical connectivity is for regional communities and particularly SMEs,” Phillipou said.
“These improvements promise to accelerate development and bring opportunities to the areas that need it most.”
Among the most significant projects is the long-anticipated upgrade of the A66 Northern Trans-Pennine route, which will improve connections across the North of England and support the delivery of more than 10,000 new homes.
NEW STATIONS
In the South West, the Portishead to Bristol rail line is to be reinstated after more than 60 years, with three new stations planned to bring thousands of residents closer to the railway network.
While welcoming the scale and ambition of the government’s infrastructure plan, Phillipou also urged policymakers to ensure that SMEs are not overlooked in the implementation process.
“A welcome step forward for the UK’s growth and productivity agenda – but of course the devil will be in the detail, and ensuring SMEs have fair access to contracts and planning processes will be crucial in making these transformational plans a reality,” he added.
The transport secretary, Heidi Alexander, said the funding would deliver the “biggest ever boost for city regions in the north and Midlands”, improving journey times, easing congestion and unlocking economic development.
“With over £92 billion investment, we’re delivering the schemes that fast-track economic growth and jobs, connect communities, and will help us build 1.5 million new homes,” she said.
Industry bodies and local leaders will now be watching closely to see how funding allocations translate into procurement opportunities on the ground. With SMEs often among the first to feel the benefits – or frustrations – of large-scale public investment, access to contracts and clear planning processes will be key to realising the government’s broader economic ambitions.
