The East Midlands continues to receive the lowest levels of public investment in the UK, according to new government data analysed by East Midlands Councils.
Despite robust population growth and a strong record of economic expansion, the region significantly lags in funding for transport, infrastructure, and economic development — critical areas for business productivity and competitiveness.
Figures from HM Treasury’s Public Expenditure Statistical Analyses (PESA) reveal that, between 2019 and 2024, the East Midlands received £10.8 billion less than it would have if it had been funded at the UK average. This underinvestment is most acute in transport: in 2023-24, transport spending in the East Midlands stood at just 54% of the UK average – the lowest of any UK region or nation.
The shortfall is even more pronounced in rail investment. The East Midlands received just £175 per head, compared to £477 in the West Midlands and £1,047 in London.
Councillor Sean Matthews, chair of East Midlands Councils, said: “These figures lay bare the extent to which the East Midlands has been overlooked by successive governments. If we are serious about unlocking national economic growth, we must address the structural investment gap in our region – particularly in transport and infrastructure.”
While headline GDP growth in the East Midlands has tracked national trends, the analysis highlights that this has been driven largely by population increase rather than improvements in productivity. Labour productivity in the region remains at just 84.8% of the UK average – a gap that has widened over the last two decades.
Comparisons with neighbouring regions further underscore the disparity. Between 2019 and 2024, the West Midlands received £6.7bn more in total public investment. In 2023-24, the East Midlands received 30% less per capita in economic development funding than the West Midlands.