Leicester City Council has moved nearly £10m earmarked for road improvements into the stalled scheme to modernise the city’s railway station, saying the extra cash should help unlock a long-awaited revamp of a key transport hub.
What has changed
The authority has reallocated £9.95m from a previously awarded Levelling Up grant, originally intended for the St Margaret's Way junction where the A6 meets the inner ring road. Under the revised funding agreement, the railway station project will now receive a total of £27.5m from the Levelling Up Fund. The council confirmed its own contribution of £5m remains unchanged.
- £9.95m of Levelling Up money moved from St Margaret's Way to the station project
- Station project total Levelling Up backing: £27.5m
- Council contribution: £5m (unchanged)
- Department for Transport and East Midlands Railway are reported to be considering a further £5m investment
Council and political reaction
The city’s Labour mayor described the decision as a major endorsement of the station scheme. He said the building, while a landmark, was "not fit for the 21st Century" and must be made suitable for a growing city. He added that with the new budget agreed the council could proceed with confidence to deliver what he called a "bold and ambitious transformation" of the station.
"The railway station is a landmark building and a gateway to the city, but as a vital transport hub, it's just not fit for the 21st Century,"
Not all councillors welcomed the shift. Green Party representative Patrick Kitterick warned the proposals are "incredibly complex" and cautioned that scope and cost could continue to climb. The Conservative group leader, Hemant Bhatia, expressed concern about further delays and extra bills, and said the authority should be clear about the reduced scale of the St Margaret's junction work.
Planned changes at the station
The scheme includes relocating the station entrance from London Road to Station Street, with Station Street proposed to be closed to traffic and reconfigured as a pedestrianised area. Council leaders say this will improve passenger experience and capacity, and align the station with modern transport requirements.
| Item | Funding |
|---|---|
| Levelling Up for station (total) | £27.5m |
| Reallocated from St Margaret's Way | £9.95m |
| Council confirmed contribution | £5m |
| Possible additional DfT / EMR investment | Up to £5m (under consideration) |
Council papers emphasise that improvements to the St Margaret's Way junction, one of Leicester's busiest, will still proceed but at a reduced scale. Details of the revised junction scheme and timescales are expected to be set out as plans progress.
Local impact and next steps
If carried through, the revamp is intended to modernise facilities and increase capacity for passengers arriving by rail, potentially altering traffic flows and pedestrian access in the surrounding area. The council says it is working with Network Rail and East Midlands Railway (EMR) on the proposals. Officials and partners will need to set out a clear timetable, planning approvals and construction phasing to minimise disruption and keep residents informed.
For commuters and visitors, the key practical points to watch are the timing of the entrance relocation, planned pedestrianisation of Station Street and any temporary changes to road layouts while works are carried out. Councillors have called for greater transparency about scope and costs as the scheme progresses.
The council’s reallocation is likely to revive local debate about priorities between road improvements and rail infrastructure, with the balance of funding signalling a strategic bet on boosting the city’s rail gateway.
