From Whitehall to town hall: How MCAs will transform transport and communities

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Mike Batheram

Market Director, Local Transport, Transportation, Exeter, UK contact form

Mike Batheram, Market Director for Local Transport at AtkinsRéalis, explores how new funding and devolved powers are reshaping the role of Mayoral Combined Authorities - and what it will take to deliver on their promise.

After decades of fragmented transport planning and stop-start funding cycles, Britain is embarking on a bold experiment in place-based connectivity. The 2025 Spending Review, Modern Industrial Strategy and the UK Infrastructure Strategy signal plans to deliver a new era of place-based connectivity. Mayoral Combined Authorities (MCAs) are now being positioned not just as delivery partners, but as strategic architects of local growth.

With £15.6 billion in long-term transport settlements, a £500 million recyclable growth fund, and empowerment through devolution legislation, MCAs now have the funding, autonomy, and clarity to reshape mobility, unlock productivity, and create thriving, sustainable places.

Yet government funding and additional powers alone won't deliver change. MCAs must establish strategic growth corridors that maximise economic impact, structure projects to attract institutional investment, and develop the technical expertise and talent base that delivery demands.

From centralised control to local leadership

Five other MCAs - including London, North East, West Yorkshire, South Yorkshire and Liverpool City Region - will join Greater Manchester and the West Midlands in 2026 to benefit from the increased and more flexible, multi-year funding allocations. This will empower mayors to ensure they can align their transport investments with their regional housing, skills, and industrial growth strategies, enabling them to create cohesive, future-ready urban ecosystems that focus on regional needs and ambition.

The investment announcements collectively present a unique opportunity for MCAs to review their regional connectivity, identify improvements, and link people to jobs, education, healthcare, and culture, enabling the development of thriving communities and businesses.

West Yorkshire demonstrates this approach through plans for a mass transit system that will catalyse regeneration, reduce congestion, and support the region’s ambition to become a creative and digital powerhouse. Greater Manchester too intends to enhance its rail and bus networks to underpin the Victoria North regeneration, delivering 15,000 homes and £200 million in investment and boosting opportunities for all.

Liverpool City

Strategic corridors enabling maximum impact

Another golden thread is the Government’s commitment to enabling the creation of strategic growth corridors. Identifying, investing in and developing these strategic corridors has the potential to transform regional prospects.

Liverpool exemplifies this focus on growth and productivity through its Local Growth Plan. A standout transport project in the region is the Liverpool Central Project Development, which will transform the city centre and the North West’s second busiest station, opening up new opportunities for homes, work, education and leisure.

AtkinsRéalis, with support from Steer and Cushman & Wakefield, is supporting Liverpool City Region Combined Authority to deliver the regeneration and transportation strategy by reviewing the proposed rail solution and creating a compelling case for government investment. Our consortium is also identifying the most appropriate delivery and funding models for upgrading the station.

This represents an opportunity to demonstrate place-led growth in action, not only for Liverpool and the wider region but for the whole country to learn from. Strategic corridors are more than just new or enhanced infrastructure - they signal an intention to identify and invest in economic arteries that connect clusters of innovation, manufacturing, and talent.

Unlocking private investment

Realising these ambitious corridor visions requires innovative approaches that go far beyond traditional government funding - more needs to be done to attract private investment in transport. Promisingly, the expansion of the National Wealth Fund and additional funding for the British Business Bank open new opportunities for MCAs to explore ways to co-finance transport projects.

National Audit Office research on Lessons learned: private finance for infrastructure highlighted several conditions for public bodies to gain investor and public confidence, such as having access to appropriate skills, being given clear mandates, ensuring appropriate levels of risk, and managing contracts across their whole lifecycle.

Crucially, the NAO emphasised the importance of a credible and consistent pipeline - a lesson the Government has heeded. The Infrastructure Pipeline, launched in July 2025, provides greater clarity of major transport opportunities that will enable MCAs to attract institutional capital and positively impact schemes by unlocking blended finance solutions to deliver high-impact transport schemes.

Building local capability

However, accessing private capital represents just one piece of the delivery puzzle, success depends on having the right capabilities in place. The transformation will require MCAs to develop skills, use data, and encourage innovation.

The transport sector faces a critical worker shortage of up to 618,000 by 2030, driven primarily by an ageing workforce and high retirement rates, according to analysis for the Department for Transport. Apprenticeships represent a vital solution to this challenge. Recent Government reform, along with the Skills Mission Fund, indicate encouraging progress. Yet, both MCAs and private sector organisations must actively contribute to expanding local talent pipelines through apprenticeships by fostering cross-modal upskilling and create coordinated pathways into transport careers. Breaking down sector silos will be essential to building the workforce this transformation demands.

Building this transformation also demands investment in data infrastructure and technological capability. MCAs which embrace digital twins, AI-enabled transport modelling, and open data platforms can make faster, more evidence-based decisions about connectivity and urban realm improvements. New initiatives such as the Local Innovation Partnerships Fund and the National Data Library provide resources specifically designed to build local capability and enhance scheme delivery.

A decade of delivery starts now

The frameworks are in place. The funding is unprecedented. The ambition is clear. Over the next decade, MCAs have an opportunity to redefine transport for the regions and drive place-led growth.

Success will be measured not by roads laid or buses procured, but in the connections created: researchers and students accessing world-class universities, families reaching affordable housing, and workers commuting to skilled jobs. It is no longer a question whether transformation will happen, but how quickly MCAs - collaborating with transport operators, national agencies, politicians, industry, and local communities - can deliver meaningful change.