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Mike Batheram
Market Director, Local Transport, Transportation, Exeter, UK contact form
Mike Batheram, Market Director for Local Transport at AtkinsRéalis, identifies three key areas – funding and finance; integrated planning; and strategic partnerships – that mayoral combined authorities (MCAs) should use to transform programme delivery in transport.
A unique convergence is underway: mayoral combined authorities (MCAs) have been equipped with unprecedented funding and powers to reshape the transport landscape just as institutional investors are actively seeking regional investment opportunities. The UK has a first-mover advantage.
Although regions across the UK are at varying stages of devolution maturity, now the challenge is how can MCAs - both established and emerging - turn this alignment of ambition, funding and finance into delivery of the desired social, economic, environmental, education and inclusive outcomes.
The answer lies in three key areas: funding and finance; integrated planning, and strategic partnerships.
Leveraging public and private investment
Funding must be deployed strategically, ensuring every pound delivers measurable outcomes for communities. For MCAs where future funding increases have been announced, a key measure of success will be GDP growth they deliver; from supporting regional infrastructure investment programmes to the growth of sectoral clusters in the North and Midlands set out in the Industrial Strategy 2025.
The correlation is clear: the regions delivering higher than average GDP growth have all been recipients of increased investment over the last few years. According to data from the Office for National Statistics up to 2023, GDP grew by more than the UK average of 0.3% in the North East, North West, West Midlands and the East.
The Autumn Budget provided cities with additional funding streams through the introduction of a tourist levy charge. This model has been a success in Switzerland where a free travel card is provided to visitors for use on the local bus and metro systems - driving investment and use of public transport.
While innovative revenue streams like the tourist levy can supplement public funding, attracting private capital is critical to support the infrastructure renewal and transport schemes our regions need. Our recent research into investor attitudes towards UK infrastructure reveals that 79% of institutional investors are interested in programmes led by mayoral combined authorities, with a third actively exploring investment options.
There is a narrow window, however, to convert interest into investment. Just 3% of investors in our research had similar regional programmes elsewhere in their global portfolios, presenting a rare opportunity for the UK to capture early mover advantage while it offers a level of stability and predictability not currently seen elsewhere.
Investors consistently cited the need for visibility of clear pipelines and alignment between local and national priorities. The Government's 10-year Infrastructure Pipeline signals national commitment, but MCAs must now translate their Local Growth Plans into credible, sequenced project pipelines that give investors’ confidence. As one UK infrastructure investor managing £5bn-£10bn noted, “Setting up local investment platforms can help find good opportunities and bring funding to areas that need it most.”
But visibility alone isn't enough - investors also need confidence that MCAs have the planning capabilities and institutional capacity to deliver on these pipelines.
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Integrated land use and transport planning
Building this confidence requires MCAs to demonstrate strong local delivery capabilities. MCAs have a unique opportunity to lead the delivery of integrated planning that aligns transport investment with land use strategies.
Investors cited local bureaucracy – from slow planning to difficulty securing approvals – as barriers to investment. “Local governments can unlock regional funding by being properly resourced and legally empowered to engage in infrastructure partnerships,” said one Canadian bank investor with £10bn-£25bn of assets under management.
The most successful MCAs will be those that streamline decision-making while expanding technical capacity for business case development and data-driven planning. The establishment of new MCAs in 2028 and pending local government reorganisation in England will undoubtedly identify duplication or overlapping skills. Some authorities will be combined or abolished, risking a loss of vital skills that the industry needs more than ever. MCAs will need to expand and deepen these capabilities to ensure they have sufficient capacity to work with developers and investors to deliver masterplans and schemes to maximise the return from their increased funding.
MCAs will need to further build on their work with constituent metropolitan and unitary authority leaders, elected members and officers to ensure their knowledge and insight are used to develop plans that reflect local priorities. A prime example is Andy Burnham’s recent announcement of a £1bn Greater Manchester Good Growth Fund. Developed with constituent authorities, the first wave of projects is expected to deliver nearly 3,000 homes, more than 22,000 jobs, and 2 million square feet of employment space. This will enable Greater Manchester's ambitions to grow regional GDP by £38bn over the next 10 years.
Delivering programmes of this scale and complexity requires more than funding and planning capability - it demands strategic partnerships that can accelerate delivery.
Strategic partnerships for investment step change
Strategic partnerships with an end-to-end delivery partner can enable streamlined outcomes and enhanced accountability, helping to avoid the fragmented responsibility and delivery that can emerge from multi-lot arrangements.
Crucially, 38% of investors prefer early-stage involvement to shape design and operations - making strategic partnerships that integrate finance, planning, and delivery organisations essential from project inception. As a UK banking investor managing £50bn+ explained, “Bringing in private sector input early in infrastructure helps ensure commercial viability and leads to better project outcomes through collaboration.” In transport specifically, 57% of investors enter projects at the early development phase versus 28% post-completion, highlighting why MCAs must structure partnerships to enable early private sector engagement.
A strategic partnership that encourages end-to-end delivery can enable faster, more coordinated outcomes, as all parties have skin in the game. MCAs, as conveners, have the opportunity to bring together stakeholders and partners who share the vision for integrated, outcome-driven delivery; forming strategic delivery partnerships with organisations that are helping to leverage private sector finance to deliver their ambitions.
AtkinsRéalis is supporting MCAs to develop investment-ready propositions that bridge the gap between investor appetite and regional growth ambition. In Liverpool City Region, we are supporting the Liverpool Central Project Development to create a compelling place-based business case for investment in transforming the North West's second-busiest station. In the West Midlands, Birmingham Eastside demonstrates how strategic partnerships can integrate transport, regeneration, and economic growth into a single deliverable programme.
Converting investment into action
MCAs stand at the forefront of regional transformation. Government investment and new public funding mechanisms such as the tourist levy provide a much-needed source of revenue to fund transport to enable better access to jobs, education, and services.
Establishing clear pipelines, confidence in planning capabilities, and strategic partnerships will be essential for MCAs to convert investor appetite into co-investment. It is essential to give pension providers, developers and fund managers greater confidence to invest in the regions, to realise the ambition MCAs have to deliver large-scale projects, regeneration and development which tackle long-standing disparities within their communities.
The time for incremental change is over: now is the moment for bold, collaborative action.
This article was originally published on Interchange UK in December 2025.
Please note that you are now leaving the AtkinsRéalis website (legal name: AtkinsRéalis Group inc.) and entering a website maintained by a third party (the "External Website") and that you do so at your own risk.
AtkinsRéalis has no control over the External Website, any data or other content contained therein or any additional linked websites. The link to the External Website is provided for convenience purposes only. By clicking "Accept" you acknowledge and agree that AtkinsRéalis is not responsible, and does not accept or assume any responsibility or liability whatsoever for the data protection policy, the content, the data or the technical operation of the External Website and/or any linked websites and that AtkinsRéalis is not liable for the terms and conditions (or terms of use) of the External Website. Further, you acknowledge and agree that you assume all risks resulting from entering and/or using the External Website and/or any linked websites.
BY ENTERING THE EXTERNAL WEBSITE, YOU ALSO ACKNOWLEDGE AND AGREE THAT YOU COMPLETELY AND IRREVOCABLY WAIVE ANY AND ALL RIGHTS AND CLAIMS AGAINST ATKINSRÉALIS, AND RELEASE, DISCHARGE, INDEMNIFY AND HOLD HARMLESS ATKINSRÉALIS, ITS OFFICERS, EMPLOYEES, DIRECTORS AND AGENTS FROM ANY AND ALL LIABILITY INCLUDING BUT NOT LIMITED TO LIABILITY FOR LOSS, DAMAGES, EXPENSES AND COSTS ARISING OUT OF OR IN CONNECTION WITH ENTERING AND/OR USING THE EXTERNAL WEBSITE AND/OR ANY LINKED WEBSITES AND ANY DATA AND/OR CONTENT CONTAINED THEREIN.
Such waiver and release specifically includes, without limitation, any and all rights and claims pertaining to reliance on the data or content of the External Website, or claims pertaining to the processing of personal data, including but not limited to any rights under any applicable data protection statute. You also recognize by clicking “Accept” that the terms of this disclaimer are reasonable.
The information provided by Virtua Research cited herein is provided “as is” and “as available” without warranty of any kind. Use of any Virtua Research data is at a user’s own risk and Virtua Research disclaims any liability for use of the Virtua Research data. Although the information is obtained or compiled from reliable sources Virtua Research neither can nor does guarantee or make any representation or warranty, either express or implied, as to the accuracy, validity, sequence, timeliness, completeness or continued availability of any information or data, including third-party content, made available herein. In no event shall Virtua Research be liable for any decision made or action or inaction taken in reliance on any information or data, including third-party content. Virtua Research further explicitly disclaims, to the fullest extent permitted by applicable law, any warranty of any kind, whether express or implied, including warranties of merchantability, fitness for a particular purpose and non-infringement.
The consensus estimate provided by Virtua Research is based on estimates, forecasts and predictions made by third party financial analysts, as described above. It is not prepared based on information provided by AtkinsRéalis and can only be seen as a consensus view on AtkinsRéalis' possible future results from an outside perspective. AtkinsRéalis has not provided input on these forecasts, except by referring to past publicly disclosed information. AtkinsRéalis does not accept any responsibility for the quality or accuracy of any individual or average of forecasts or estimates. This web page contains forward-looking statements based on current assumptions and forecasts made by third parties. Various known and unknown risks, uncertainties and other factors could lead to material differences between AtkinsRéalis' actual future results, financial situation, development or performance, and the estimates given here.
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