£500m Budget sets out major transport and growth investment across the East Midlands

Credit: Onclusive News

Hundreds of millions of pounds are set be invested in transport, regeneration and public services across the East Midlands.

The £500 million East Midlands Combined County Authority budget for 2026/27 – approved unanimously by the EMCCA Board today (Monday 26th January) – reflects EMCCA’s growing role as a devolved authority and marks a significant step change in investment and delivery across the region.

It includes a £290m capital programme, with more than 70 per cent focused on transport infrastructure to better connect communities and support economic growth. This includes more than £120m for the region’s four highways authorities towards roads maintenance.

The budget report highlights EMCCA’s growth with expanded responsibilities, requiring increased capacity to deliver at scale from 2026/27.

Mayor of the East Midlands, Claire Ward said: “This budget sets out a clear plan to invest in better transport, stronger communities and a fairer, more prosperous East Midlands. Devolution is giving us the tools to make decisions that work for our region, and this financial plan ensures we deliver on those ambitions while managing public money responsibly.”

More than £200m will be invested in transport in 2026/27, supported by the Government’s £2 billion Transport for City Regions funding secured by the Mayor in June 2025.

The transport programme focuses on:

• Investing in integrated transport networks, including rail, tram, bus, walking and cycling;
• Increased investment on maintenance works on the local road network;
• Improving access to jobs and opportunity;
• Promoting cleaner, healthier travel choices.

Key schemes include more than £7.5m to improve five junctions on the A614/A6097 corridor to reduce congestion and support housing growth. A further £22m has been allocated to bus service improvements, helping protect and enhance vital routes across the region. Local neighbourhood projects will receive £13.5m to improve road safety and local travel in towns and villages.

From April 2026, EMCCA will also take on responsibility for public transport operational services from Derby City, Derbyshire County, Nottingham City and Nottinghamshire County councils.

The budget supports delivery of the Mayor’s East Midlands Growth Plan, a long-term vision to deliver fast, fair growth across Derby, Derbyshire, Nottingham and Nottinghamshire. The plan aims to add £13bn to the regional economy, deliver more than 100,000 homes, support 210,000 new qualifications, and invest more than £2bn in transport infrastructure.

The East Midlands Investment Zone will receive £14.8m in 2026/27, building on Government backing of £160m over the next decade. Funding will support innovation, skills and business growth, including the University of Derby’s skills pipeline and industrial development at Hartington Commerce Park.

Housing delivery will be supported by £20m from the Brownfield Housing Fund, helping unlock about 2,000 new homes on previously developed land across the region.

EMCCA’s Investment Fund will commit £95m over five years, including £19m in 2026/27, to support regeneration projects in towns and city centres. Projects being supported include the Sherwood Revival in Ollerton and the next phase of Derby’s Becketwell regeneration.

Alongside capital investment, £226m is allocated in the 2026/27 revenue budget to support EMCCA services and programmes. The £106m allocated to the Place directorate includes the cost of assuming responsibility for public transport, such as bus contracts and concessionary fares.

There is also £91m earmarked for strategy and inclusive growth which includes more than £75m for grants to external providers, including the Adult Skills Fund and related programmes. This supports the Mayor’s new Get East Midlands Working Plan, which aims to help 60,000 more people into work over the next decade.