Funding has been secured through a combination of £165 million of specific Department for Transport capital grant, £105 million of additional capital grant funding from the Government through the Earn Back model, and £20 million of Local Transport Plan (LTP) funding.
The Earn Back model is explained fully on the Greater Manchester Combined Authority website. The GMCA describe the model as follows:
“A radical Earn back model where the government has agreed in principle that up to £1.2 billion invested up front in infrastructure improvements by Greater Manchester will be ‘paid back’ to the combined authority as real economic growth is seen. This is the first tax increment finance-style Scheme in England outside London.
“These ‘earned back’ funds will be reinvested in further infrastructure improvements to allow Greater Manchester to reach its economic potential. The first phase of this will include the completion of the Greater Manchester Transport Fund programme, enabling the early implementation of Schemes including the South East Manchester Multi Modal Strategy (SEMMMS) and the extension of Metrolink to Trafford Park.”