Leicester Station Revamp Secures £27.5m Funding Package After Government Reallocates Levelling Up Cash

Historic gateway to the city moves closer to transformation as major regeneration project gains financial backing

Long-awaited plans to transform Leicester railway station have received a significant boost after the Government agreed to redirect almost £10 million of previously allocated Levelling Up funding to help deliver the landmark redevelopment.

The decision increases Government support for the station scheme to £27.5 million, providing fresh momentum for a project designed to modernise one of the East Midlands' busiest transport hubs while restoring its historic Victorian character.

Leicester City Council will formally approve the funding transfer later this month, following agreement from the Department for Transport to reallocate £9.95 million originally earmarked for improvements at the nearby St Margaret's Junction.

Major station transformation moves a step closer

The redevelopment aims to create a larger, more accessible and more welcoming railway station capable of supporting Leicester's continued growth while improving the experience for passengers arriving in the city.

The project is being delivered through a partnership between Leicester City Council, Network Rail and East Midlands Railway (EMR).

Previous procurement attempts failed to appoint a development partner, prompting a review of the project's funding package. The revised financial settlement is expected to allow the scheme to progress with renewed confidence.

Victorian heritage meets modern transport hub

The proposals would fundamentally reshape the station's layout while preserving its historic identity.

A key element of the scheme involves relocating the station's principal entrance from London Road to Station Street, where a new pedestrian plaza would replace the existing road, creating an improved public space linking the station directly with the city centre.

The Grade II-listed Victorian frontage would be carefully restored to become the station's primary entrance, while the existing glass-covered porte-cochère would be refurbished to provide space for cafés, retail outlets and other passenger facilities.

Inside the station, the ticket hall and main concourse would be reconfigured to provide significantly more space, while new lifts, stairways and an accessible curved ramp would improve step-free access throughout the building.

Vehicle access would also change, with taxi ranks together with pick-up and drop-off facilities relocated to the rear of the station near Fox Street.

Further investment under discussion

Alongside the revised funding package, Leicester City Council is continuing discussions with both the Department for Transport and East Midlands Railway over a potential additional £5 million contribution that could further enhance the scheme.

The council has already committed £5 million towards the project.

City leaders welcome funding agreement

Leicester City Mayor Sir Peter Soulsby described the station as one of the city's most important buildings but said it no longer meets the needs of modern passengers.

He said the revised funding package demonstrates the Government's commitment to delivering the project and provides confidence that the ambitious redevelopment can now move forward.

Rail partners back the redevelopment

East Midlands Railway says the improvements will significantly enhance the passenger experience while restoring one of Leicester's most recognisable historic buildings.

Philippa Cresswell, Customer Experience Director at EMR, said the redevelopment would strengthen the station's role as the city's gateway while improving connections with the wider community.

Network Rail also welcomed the funding decision.

Gavin Crook, Principal Programme Sponsor for Network Rail's East Midlands Route, said the scheme would create a more accessible, welcoming station and deliver smoother journeys for passengers using the facility.

St Margaret's improvements still to proceed

Although part of the Levelling Up funding has been redirected, Leicester City Council has confirmed that improvements to St Margaret's Junction will still be delivered.

A revised £5.2 million scheme will retain the project's core objectives while reducing overall costs.

The plans include permanently removing the disused pedestrian subways beneath the junction, extending green space around St Margaret's Church, improving bus movements, easing congestion and introducing safer routes for pedestrians and cyclists.

Because the redesigned junction requires fewer structural changes than originally proposed, the council says the reduced budget remains sufficient to deliver the scheme's principal benefits.

Construction planning continues

The council intends to begin procuring a new development partner later this summer, with an appointment expected early in 2027.

Meanwhile, a separate contract covering restoration of the station's historic façade has already been advertised, with work on that element potentially beginning before the end of the year.

If approved as expected, the revised funding package will mark a major step towards delivering one of Leicester's largest city centre regeneration projects, creating a modern transport hub while preserving one of the city's most significant Victorian landmarks.