South Yorkshire is set to receive £1.5 billion in government funding to overhaul its public transport system, with a focus on electrification, modernisation, and local control. The investment includes a full replacement of Sheffield’s ageing tram fleet by 2032, and a phased rollout of franchised bus services across the region starting in 2027.
Under the plans, bus services in Sheffield, Doncaster, and Rotherham will move to a franchised model by 2027, with full regional coverage expected by 2029. This shift will give local authorities control over routes, fares, and schedules, mirroring the operational model already in place in Greater Manchester.
A further £530 million of the funding is earmarked for renewing the South Yorkshire tram network, which serves key commuter and residential corridors in Sheffield and Rotherham. The upgrades are intended to support local job creation, improve commuting options, and expand access to the regional labour market.
The announcement is part of a broader £15.6 billion commitment to transport infrastructure across the North and Midlands. It comes ahead of the upcoming government spending review, where further reforms, including changes to the Treasury’s project evaluation framework, are expected to be unveiled.
For transport operators, local authorities, and infrastructure suppliers, the programme opens the door to new procurement, construction, and service opportunities over the next decade.
