This report, produced by Steer for the Urban Transport Group, shows how Britain’s light rail systems have supported economic growth in the areas that they serve, promoted social inclusion and led to environmental gain, including a reduction in carbon emissions.

It argues there is a need to maintain the connectivity provided by light rail as the economies of the towns and cities that light rail serves recover from the impacts of the COVID-19 pandemic. It says investment in maintenance and renewal will continue and potentially enhance the benefits that light rail brings and that a stable Government policy and funding environment will help promoters come forward with light rail proposals that will bring further economic, societal and environmental benefits.

The Leading light report looks systematically at how light rail – which pre-pandemic carried 282 million passengers a year (2018/19) – contributes to the economic, social and environmental objectives of both national and city region governments.

• Economic benefits - Light rail can support growth in employment and economic activity in town and city centres in a way that minimises the negative impacts that growth in car traffic would bring but that facilitates redevelopment, regeneration and improved public realm. One study found that the Tyne and Wear Metro contributed around £290m to the Gross Value Added (GVA) of the North East economy.  
• Social benefits – Light rail can contribute to the Government’s levelling up agenda and help ‘left behind’ town and city centres by providing better access to jobs, education and training for those living in deprived areas. For example, in an Ipsos MORI study into the impact of a new Manchester Metrolink line on Wythenshawe, 84% of people said the tram contributed most to giving them access to a wider range of places with job opportunities. Additionally, 67% of Tyne and Wear Metro journeys pre-COVID were made by people who did not have access to a car.  
• Environmental benefits – Light rail can support the transition to net zero carbon and contribute to cleaner air in cities. This is because light rail is one of the least polluting transport modes (and zero emissions at the point of use). Manchester Metrolink and Nottingham’s NET, for example, are powered exclusively by renewable energy. South Yorkshire Passenger Transport Executive estimate that Sheffield Supertram helps to save over 2,000 tonnes of CO2 per year.