North East to get £1.8B of Government funding for transport

The Washington Loop extension of the Tyne and Wear Metro will go ahead

North East Mayor Kim McGuinness and Gateshead Council leader Martin Gannon pictured on the Leamside Line
Author: Micky WelchPublished 4th Jun 2025
Last updated 4th Jun 2025

North East Mayor Kim McGuinness today announced the first new Metro line for 30 years will be built as part of a £1.85bn funding deal agreed with the Government.

The new Metro line through Washington stands at the heart of the largest single package of investment ever made in the North East’s transport networks, funding a huge investment in road maintenance, better and safer walking and cycling routes and new bus priority measures.

Mayor McGuinness secured the investment after raising it personally with Chancellor Rachel Reeves and today hailed the deal agreed with Treasury as ‘game changing’ as she delivers on her vision to create the ‘Angel Network’ - a fully integrated sustainable transport network to drive the economy, support new home building and extend opportunity to all.

North East Mayor Kim McGuinness said:

“When I was elected Mayor I promised voters I would extend the Metro and now, 12 months on, I can today announce that will happen.

Washington Loop

“I am thrilled to say we can now get on with the job of building the first new Metro line for 30 years, at last connecting Washington to the rail network and linking tens of thousands of people to new jobs and opportunity in our growing advanced manufacturing sector.

“This is a game-changing moment for the people of our region, who can look forward to a truly world-class integrated public transport network, safer walking and cycling routes throughout our towns and cities, better local roads and a massive acceleration on our journey to an EV future.

“I promised to make the North East the home of real opportunity and deliver quality integrated transport that works for all. This funding means that we can create the Angel Network with buses under public control, more electric buses running on time along priority corridors, and contactless smart travel whether you are on a bus a Metro or a train.

“We will improve accessibility and safety for women and girls through upgrades to railway stations, interchanges and bus stops, make walking and cycling routes attractive and build the best electric vehicle charging network in the country.”

Councillor Michael Mordey, the leader of Sunderland Council, said:

“This is great news for Washington and the whole city of Sunderland. We have waited a long time to see Metro reach Washington with a direct line from the city centre.

“This new Metro line will transform public transport for people living in Washington and connect people from surrounding areas to the jobs we are creating around Nissan and the neighbouring International Advanced Manufacturing Park.”

The mayor’s deal will provide a major boost towards meeting the total cost of Metro to Washington, with the whole package also expected to include private sector funding.

Work to draw up detailed plans for line through Washington is already underway, with the new line, estimated to cost a total of about £900m, expected to see the first trains run in 2033, just over 30 years since the Metro line through Sunderland opened.

It will serve tens of thousands of homes in Washington, the fourth largest town in England not until now connected to the rail network, and bring people to jobs in the UK’s largest advanced manufacturing zone around the Nissan car factory.

North East Mayor

The £1.85bn announced today will also fund local authority road and public transport projects right across the North East. These include highways maintenance, the roll out of safe and high-quality walking and cycling routes, hundreds of new EV charging points throughout towns and villages, and new bus priority measures to make journey times more reliable.

The funding will also take forward the creation of the Angel Network, a fully integrated sustainable public transport network including contactless travel across bus, Metro and rail and improvements to safety and accessibility where people wait, from bus stops and Metro stations through to large interchanges.

The funding been agreed as the latest phase of the region’s City Region Sustainable Transport Settlement (CRSTS2). It will cover the five-year period from 2027 to 2032.

The agreement is wholly new money and will form part of the North East Combined Authority’s “Integrated Settlement”, a fully devolved funding stream that will cover investment in transport, housing investment and economic growth and skills and employment programmes which form the Mayor’s New Deal for North East Workers.

Washington Loop plans already being drawn up

Designs for new railway stations, bridges, and other critical infrastructure needed to finally bring the Tyne and Wear Metro to Washington are being drawn up.

Engineering consultants Arup have now been appointed to carry out a feasibility study for the project and specialist design work, Metro operator Nexus announced on Thursday.

Washington Loop

The proposed Washington Metro Loop would use the northern section of the mothballed Leamside railway line to form a link between the existing stations at Pelaw and South Hylton.

An indicative map of the line has suggested that it could have two stations in Washington and another at Follingsby.

Full details of where Metro trains would stop in the area, the economic benefits of the 13km rail extension, and the true cost of the project are expected to be revealed during the development of the outline business case.

It was previously estimated in 2022 that the scheme would cost £745 million to build.

However, it has since been listed as costing £900 million in the mayor’s new regional transport plan, which sets a target of delivering the project by 2032.

The Washington Metro Loop represents the first section of a wider ambition to reopen the entire Leamside Line, which runs down through County Durham and could allow for the launch of new Tyne-Tees train services.

While the restoration of the line has been a top priority of North East leaders for years, there have been concerns about the money and time it could take to deliver – with some critics having raised concerns that it could be a “vanity project” which it may not be feasible to deliver.

Ms McGuinness said: “I said that I will bring the Metro to Washington and I’m delivering on that promise. I’m delighted we have reached another major milestone with the appointment of Arup, who will now provide specialist design work for the project.

“Last summer, I announced £8 million to kick-start work to bring the Metro to Washington which is a major part of my ambition to re-open the whole Leamside rail route through County Durham and Sunderland . I am determined to transform our transport network to change the lives of local people for generations to come.

“This project will be the biggest expansion of the Metro for more than 20 years – and it will be just as transformative as the Sunderland line was when it first opened back in 2002. This is such an exciting time for rail in the North East as we see these projects come to life.”

Rachel Hurdman, associate director at Arup, added: “The investment in transport capability across the North East reflects a shared vision for regional growth, transforming connectivity through an integrated network and enhancing access for local communities.

“Building on Arup’s expertise in rail and infrastructure development, we look forward to working with Nexus to shape a deliverable, sustainable programme that meets the needs of communities today and for generations to come.”

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