The East Midlands Combined County Authority has approved a £500 million budget for 2026/27, including a £290 million capital programme, with over 70% directed towards transport infrastructure.
The combined authority said that more than £200 million will be invested in transport during the financial year, supported by funding secured through the Government’s Transport for City Regions programme. Up to £120 million will be allocated to the region’s four highways authorities for road maintenance in 2026/27, with similar inflation-adjusted sums planned for the following two years.
An additional £22 million has been set aside for bus service improvements across the region, while £13.5 million will fund neighbourhood schemes aimed at road safety and local travel. From April 2026, the authority will assume responsibility for public transport operations from four local councils, including bus contracts and concessionary fares.
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.”
The budget aligns with the Mayor’s East Midlands Growth Plan, which targets £13 billion in added economic value, delivery of more than 100,000 homes, 210,000 new qualifications and over £2 billion in long-term transport investment.
A further £19 million from a £95 million five-year investment fund will support town and city centre regeneration projects, including schemes in Ollerton and Derby.
Alongside capital spending, £226 million has been allocated to revenue programmes. Of this, £106 million will support place-based services, including the costs associated with taking on public transport responsibilities. A further £91 million is earmarked for strategy and inclusive growth, with more than £75 million directed to external providers through programmes such as the Adult Skills Fund to support employment and training objectives across the region.
(Picture: East Midlands Combined County Authority)
