East Midlands Approves £500m Budget to Transform Transport, Growth and Public Services

Hundreds of millions of pounds are set to be invested across the East Midlands after the East Midlands Combined County Authority (EMCCA) unanimously approved its £500m budget for 2026/27.

Signed off by the EMCCA Board on Monday 26 January, the budget includes a £290m capital programme, with more than 70% dedicated to transport infrastructure aimed at improving connectivity and driving economic growth. Over £120m of this funding will go directly to the region’s four highway authorities to support road maintenance.

The budget also reflects EMCCA’s expanding role under devolution, with increased responsibilities from 2026/27 requiring greater organisational capacity to deliver programmes at scale.

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.”

Major investment in transport

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

Key priorities for the transport programme include:

• Developing integrated transport networks across rail, tram, bus, walking and cycling

• Increasing investment in local road maintenance

• Improving access to jobs, education and services

• Encouraging cleaner and healthier travel options

Among the headline schemes is £7.5m to upgrade five junctions along the A614/A6097 corridor, easing congestion and enabling housing growth. A further £22m will be used to improve bus services across the region, helping to protect and enhance key routes, while £13.5m has been allocated to neighbourhood projects focused on road safety and local travel improvements.

From April 2026, EMCCA will also assume responsibility for public transport operations previously managed by Derby City, Derbyshire County, Nottingham City and Nottinghamshire County councils.

Supporting growth and regeneration

The budget underpins delivery of the Mayor’s East Midlands Growth Plan, which sets out a long-term ambition to add £13bn to the regional economy, deliver more than 100,000 homes, support 210,000 new qualifications and invest over £2bn in transport infrastructure.

As part of this, the East Midlands Investment Zone will receive £14.8m in 2026/27, contributing to a £160m government commitment over the next decade. Funding will support innovation, skills development and business growth, including initiatives at the University of Derby and industrial expansion at Hartington Commerce Park.

Housing delivery will also benefit from £20m through the Brownfield Housing Fund, helping unlock around 2,000 new homes on previously developed land.

Meanwhile, EMCCA’s Investment Fund will commit £95m over five years, including £19m next year, to regenerate towns and city centres. Projects include the Sherwood Revival scheme in Ollerton and the next phase of Derby’s Becketwell regeneration.

Revenue funding and skills programmes

Alongside capital investment, the 2026/27 revenue budget totals £226m to support EMCCA’s services and programmes. This includes £106m for the Place Directorate, covering the cost of taking on public transport responsibilities such as bus contracts and concessionary fares.

A further £91m has been allocated to strategy and inclusive growth, with more than £75m directed to grants for external providers, including the Adult Skills Fund. This funding supports the Mayor’s Get East Midlands Working Plan, which aims to help an additional 60,000 people into employment over the next decade.

Together, the budget signals a major step forward for the East Midlands as it moves from planning to delivery, using devolved powers to drive growth, improve transport and invest in people and communities across the region.