Leicester station revamp secures £10m funding boost

Leicester City Council is set to redirect almost £10m of Government funding to support the redevelopment of the city’s railway station.

The Department for Transport has approved the transfer of £9.95m from Levelling Up funding originally allocated to the St Margaret’s junction scheme. The move brings total Levelling Up Fund support for the station project to £27.5m.

The redevelopment is being led by Leicester City Council with Network Rail and East Midlands Railway. It aims to modernise the Grade II-listed station, improve passenger capacity and create a stronger gateway into the city centre.

City Mayor Peter Soulsby said: “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.

“It urgently needs investment and a radical revamp so it can continue to meet the needs of our growing city.

“This new funding agreement with the Government is a tremendous endorsement of the importance of this project. There is a real determination to make this happen.

“With a new budget agreed, we can now move forward with confidence and deliver the bold and ambitious transformation of our historic railway station that is so badly needed.”

Plans include moving the main entrance from London Road to Station Street, which would be closed to traffic and turned into a pedestrianised public plaza. The station’s Victorian façade would be restored and used as the new entrance, facing towards Granby Street.

The existing glass-roofed entrance hall would also be refurbished for potential café, bar or retail use. Pick-up and drop-off areas, including hackney cab points, would move to the rear of the station off Fox Street.

A new curved ramp, steps and lift would connect the new entrance to the main concourse and ticket hall, which is also due to be remodelled to create more space for passengers.

The council is expected to appoint a main development partner early next year, with a tender exercise due to launch this summer. A separate contract for restoration work on the historic façade has already been advertised, with work on that element expected to begin later this year.

The Department for Transport and East Midlands Railway are also considering a council proposal for an additional £5m investment to further improve the scheme. The council’s own £5m contribution remains unchanged.

Despite the funding transfer, improvements to St Margaret’s junction will still proceed through a revised £5.2m scheme, supported by £2.2m from the Levelling Up Fund.

The updated junction scheme will remove and fill in the closed subway tunnels near St Margaret’s Church, allowing nearby green space to be extended into a small park. It will also include measures to improve bus movement, ease congestion around St Margaret’s Bus Station, and provide new pedestrian crossings and safer cycling routes.

The revised plans will require fewer layout changes than the original proposal, reducing the overall project cost. Final designs are due to be developed in the coming months.

A formal executive decision on the funding reallocation is expected on 22 July 2026.